____________________ refers to a situation in which the financial sector is unable to allocate funds to the most productive projects.
A) Financial crisis
B) Contagion
C) Regulatory arbitrage
D) Financial instability

Question

Quizplus · Accepted Answer

Financial instability refers to a situation where the financial system is unable to efficiently allocate funds, often due to disruptions or inefficiencies, leading to suboptimal investment in productive projects.

____________________ Refers to a Situation in Which the Financial Sector