A credit boom can lead to a(n)________ such as we saw in the tech stock market in the late 1990s.
A) asset-price bubble
B) liability war
C) decline in lending
D) decrease in moral hazard

Question

Quizplus · Accepted Answer

A credit boom often leads to an asset-price bubble where asset prices, such as stock prices, rise rapidly above their fundamental values due to the abundance of cheap credit available. This is exactly what happened in the tech stock market in the late 1990s.

A Credit Boom Can Lead to A(n)________ Such as We