The first element of a financial crisis is

Question

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A large decline in some asset prices, such as housing or stocks, can trigger a financial crisis as it can lead to defaults on loans and a decrease in the value of assets held by financial institutions, causing a ripple effect throughout the economy. Inflation, relaxation of rules and regulations, and decline in confidence in financial institutions may contribute to a financial crisis, but they are not the primary trigger.

The First Element of a Financial Crisis Is