Most financial crises have started during periods of ________ either after the start of a recession or a stock market crash.
A) high uncertainty
B) low interest rates
C) low asset prices
D) high financial regulation

Question

Quizplus · Accepted Answer

Financial crises often occur during periods of high uncertainty, whether it is uncertainty about the economy, politics or financial markets. This uncertainty can lead to a lack of confidence in the financial system, causing investors and consumers to panic and withdraw their investments, which further exacerbates the crisis. Therefore, A is the correct answer as it highlights the factor of high uncertainty which is usually present during financial crises.

Most Financial Crises Have Started During Periods of ________ Either