The First Element of a Financial Crisis Is

question 26

Multiple Choice

The first element of a financial crisis is

• A)inflation.
• B)a decline in confidence in financial institutions.
• C)a relaxation of rules and regulations that pertain to the financial system.
• D)a large decline in some asset prices.

---

Definitions:

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Condition Subsequent

A condition under which the obligations of a contract will end.

Mutual Release

An agreement between two parties in which each side agrees to release the other from any possible claims or liabilities arising from a certain event or situation.

Canceling Order

An instruction to cancel a previously issued order before it is executed, commonly used in trading and procurement.