The Primary Cause of the Banking Crises That Occurred Between

question 25

Multiple Choice

The primary cause of the banking crises that occurred between 1970 and 2007 in poor countries was_____. The primary cause in wealthy countries was _____.

• A)too much government regulation; too much government regulation
• B)too-high capital requirements; the purchase of too much government debt
• C)too-low capital requirements; too-high capital requirements
• D)corruption; real estate bubbles

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Definitions:

Derivative-Action Provision

A component in corporate governance that allows a shareholder to sue or take legal action on behalf of the corporation, often against directors or management for misconduct.

Corporate Opportunity

A business opportunity or prospect that a corporation's directors, officers, or employees might have a duty to offer to the corporation before pursuing independently.

Board Of Directors

A group of elected or appointed members who jointly oversee the activities of a corporation or organization.

Par-value

The nominal or face value assigned to a share of stock by the company's charter, not necessarily reflecting its market value.