When we say that the financial crisis can be viewed as a balance sheet problem,this is descriptive of

Question

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A balance sheet problem refers to the situation where a company's liabilities exceed its assets, leading to insolvency. During the financial crisis, many banks possessed assets such as mortgages and securities that were declining in value rapidly, making them insolvent or approaching insolvency. Therefore, the financial crisis can be viewed as a balance sheet problem for many banks. Choices A, C, and D are incorrect as they do not describe a balance sheet problem.

When We Say That the Financial Crisis Can Be Viewed