All financial crises have elements of:
A)insolvency and government corruption.
B)asset price declines and failures of financial institutions.
C)declining liquidity and low interest rates.
D)high inflation and high interest rates.

Question

Quizplus · Accepted Answer

Asset price declines and failures of financial institutions are common elements in all financial crises. While other factors such as insolvency, government corruption, declining liquidity, and high inflation and interest rates may also be present, they are not necessarily present in every financial crisis.

All Financial Crises Have Elements Of