Banking crises are:
A)not very harmful to the real economy, since money is neutral in the long run.
B)typically followed by recessions.
C)typically the beginning of long periods of economic growth.
D)usually over with very quickly.

Question

Quizplus · Accepted Answer

Banking crises are typically followed by recessions, as the loss of confidence in the banking system can lead to a credit crunch and decreased lending, which in turn can lead to lower investment and consumption, and ultimately lower economic growth.

Banking Crises Are