A Vicious Cycle of Deleveraging Occurs When Sales of Assets

question 58

True/False

A vicious cycle of deleveraging occurs when sales of assets to cover losses produce positive balance sheet effects on other firms,causing creditors to call and extend further loans,which forces further sales of assets and further decreases in prices.

---

Definitions:

Mutation

A mutation is any change to the genomic sequence of an organism.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, a key mechanism of evolution proposed by Charles Darwin.

Landscape Genetics

An interdisciplinary field that combines landscape ecology and population genetics to study the effects of the environment on the genetic variation of species.

Evolution

The mechanism by which diverse species of organisms are considered to have emerged and varied from their predecessors over the course of the Earth's history.