Financial crises
A: are major disruptions in financial markets that are characterized by sharp declines in asset prices and the failures of many financial and nonfinancial firms
B: occur when adverse selection and moral hazard problems in financial markets become more significant
C: frequently lead to sharp contractions in economic activity
D: are all of the above
A: are major disruptions in financial markets that are characterized by sharp declines in asset prices and the failures of many financial and nonfinancial firms
B: occur when adverse selection and moral hazard problems in financial markets become more significant
C: frequently lead to sharp contractions in economic activity
D: are all of the above
举一反三
- The presence of _________ in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.
- Financial markets improve economic welfare because _________
- Financial innovation has led to closer integration of other financial firms with financial markets, greatly expanding their scope of business and enhancing market competitiveness.
- Factors that lead to worsening conditions in financial markets include
- Financial innovation has led to closer integration of other financial firms with financial markets, greatly expanding their scope of business and enhancing market competitiveness. A: 正确 B: 错误