What are the three ingredients of a financial and banking crisis?

What will be an ideal response?


A financial and banking crisis occurs when there is a widespread fall in assets prices, a significant currency drain, and a run on banks. When these events occur, banks and other financial institutions face incipient failure and so they drastically decrease their lending activities.

Economics

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A bag has 10 green balls, 6 blue balls, and 44 purple balls. A ball is picked randomly from the bag. What is the probability that it is a: a) green ball. b) blue ball. c) purple ball

What will be an ideal response?

Economics

During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousand each year. This set of results is a contradiction of the law of demand

Indicate whether the statement is true or false

Economics

Refer to Figure 3-1. An increase in the price of a complement would be represented by a movement from

A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.

Economics

If the Federal Reserve sells $10 million in government securities in the open market, with a 10 percent required reserve ratio on deposits, the maximum increase in deposits would be

a. -$50 million. b. -$100 million. c. $10 million. d. $100 million. e. none of the above

Economics