During a financial crisis the possibility of bank failures rose. An increase in the likelihood of a bank failing shifts demand for its stock
A) right, so the price rises.
B) right, so the price falls.
C) left, so the price rises.
D) left, so the price falls.

Question

Quizplus · Accepted Answer

An increase in the likelihood of a bank failing makes its stock less attractive, shifting demand to the left and causing the price to fall.

During a Financial Crisis the Possibility of Bank Failures Rose