Factors that lead to worsening conditions in financial system include ________.

Question

Quizplus · Accepted Answer

Stock market declines can lead to worsening conditions in the financial system as it can cause panic and a decrease in investor confidence, leading to further market declines and potential economic instability. Increases in net worth and stock market increases are generally seen as positive for the financial system, while decreases in interest rates can have both positive and negative effects depending on the specific circumstances.

Factors That Lead to Worsening Conditions in Financial System Include