A financial crisis can be triggered when people lose 'trust' or confidence that their financial dealings will be honoured.

Question

Quizplus · Accepted Answer

This is true, as trust and confidence in financial institutions and systems are essential for the smooth functioning of the economy. When this trust is lost, people may withdraw their money from banks or stop investing, leading to a destabilization of the financial system.

A Financial Crisis Can Be Triggered When People Lose 'Trust