The dark side of financial liberalization is ________.
A) market allocations
B) credit booms
C) currency appreciation
D) financial innovation

Question

Quizplus · Accepted Answer

Financial liberalization can lead to credit booms, which can result in excessive borrowing, an increase in debt levels, and ultimately, financial instability or even crises. Market allocations, currency appreciation, and financial innovation are not necessarily negative outcomes of financial liberalization.

The Dark Side of Financial Liberalization Is ________