One Lesson Learned from the Financial Crisis of 2008 Was

question 69

Multiple Choice

One lesson learned from the financial crisis of 2008 was that

• A)government regulators need to respond slowly when financial practices threaten the economy.
• B)unregulated financial firms need to be prevented from growing so large that their failure would severely damage the economy.
• C)the ease of owning a home has no relationship to the efficiency of the financial system.
• D)unregulated financial firms need to be prevented from growing so small that their success would have no or little effect on the economy.

---

Definitions:

Unique-Event

A singular occurrence that is distinct in nature, not expected to repeat under normal circumstances.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Bullwhip Effect

A phenomenon in supply chains where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Order Size

The quantity of goods a company purchases or produces in a single order to meet its demand while minimizing costs.