How did the Greek crisis spread to the rest of Europe?
A) Through the fear that other states may also be unable to pay their debts
B) Because of arbitrage and capital mobility
C) Because many banks that were owed monies by Greek businesses were headquartered in other European states
D) Both options A and C are true.

Question

Quizplus · Accepted Answer

The spread of the Greek crisis to the rest of Europe was largely due to two factors: the fear that other states may also be unable to pay their debts (option A) and the fact that many banks that were owed monies by Greek businesses were headquartered in other European states (option C). Additionally, capital mobility and arbitrage (option B) also played a part in the spread of the crisis. Therefore, the best answer is D, both options A and C are true.

How Did the Greek Crisis Spread to the Rest of Europe