During the global financial crisis associated with the 2008 recession, finance companies had to make important decisions in a highly ambiguous environment.The decision to buy out failed banks could best be described as which type of decision?
A)Bounded
B)Programmed
C)Conventional
D)Wicked decision problem
E)Irrational decision

Question

Quizplus · Accepted Answer

The decision to buy out failed banks during the 2008 recession can be classified as a wicked decision problem. This type of decision problem is characterized by a high level of ambiguity, incomplete information, and multiple possible outcomes, making it difficult to identify the best course of action. The decision to buy out failed banks during the crisis was a complex decision that involved trade-offs between short-term and long-term objectives, balancing public and private interests, and assessing the potential risks and benefits of different options. The decision-making process was complicated by factors such as political pressure, regulatory constraints, and the need to act quickly to prevent further damage to the financial system. Therefore, this decision required careful consideration of multiple factors and a willingness to make trade-offs between competing objectives.

During the Global Financial Crisis Associated with the 2008 Recession