Each of the following is a characteristic of a financial crisis except
A) prices of stocks or of other assets crash.
B) everyone tries to move their wealth into safer forms at the same time.
C) confidence in the financial system tends to increase.
D) panic among investors can lead to a prolonged and serious depression.

Question

Quizplus · Accepted Answer

During a financial crisis, confidence in the financial system tends to decrease, not increase. This lack of confidence contributes to the severity and duration of the crisis.

Each of the Following Is a Characteristic of a Financial