Most financial crises in the United States have begun with
A) a steep stock market decline.
B) an increase in uncertainty resulting from the failure of a major firm.
C) a steep decline in interest rates.
D) all of the above.
E) only A and B of the above.

Question

Quizplus · Accepted Answer

While interest rates have played a role in some financial crises, the majority of crises in the US have been preceded by a decline in the stock market and uncertainty triggered by the failure of a major firm. Therefore, options A and B are more commonly associated with the onset of financial crises in the US.

Most Financial Crises in the United States Have Begun with