If the anatomy of a financial crisis is thought of as a sequence of events, which of the following events would be least likely to be the initiating cause of the financial crisis?
A) Increase in interest rates
B) Bank panic
C) Stock market decline
D) Increase in uncertainty

Question

Quizplus · Accepted Answer

A bank panic would be a later event in the sequence of a financial crisis, typically caused by a preceding event such as a stock market decline or increase in uncertainty. The other choices could be potential initiating causes of a financial crisis.

If the Anatomy of a Financial Crisis Is Thought of as a Sequence