At Some Point During the Financial Crisis of 2008-2009, People

question 101

Multiple Choice

At some point during the financial crisis of 2008-2009, people with uninsured deposits at financial institutions withdrew money from their accounts at those institutions. This phenomenon characterized which element of the financial crisis?

• A)the decline in confidence in financial institutions
• B)the credit crunch
• C)the economic downturn
• D)the decline in asset prices

---

Definitions:

Residential Housing

Properties used specifically for dwelling purposes, including houses, apartments, and townhomes.

Mortgage Payments

These are regular payments made by a borrower to a lender, typically consisting of both principal and interest, for the loan used to purchase property.

Present Value

The present-day valuation of a future lump sum or cash flow sequence, taking into account a defined rate of return.

Discounting Periods

The intervals at which cash flows are discounted back to their present value in financial analysis.