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Author Question: What are the three ingredients of a financial and banking crisis? What will be an ideal ... (Read 54 times)

vHAUNG6011

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on: Jun 29, 2018
What are the three ingredients of a financial and banking crisis?
 
  What will be an ideal response?

Question 2

Refer to Figure 2-15. One segment of the circular flow diagram in the figure shows the flow of wages and salaries from market K to economic agents M. What is market K and who are economic agents M?
 
  A) K = product markets; M = firms B) K = factor markets; M = firms
  C) K = product markets; M = households D) K = factor markets; M = households


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wshriver

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A financial and banking crisis occurs when there is a widespread fall in assets prices, a significant currency drain, and a run on banks. When these events occur, banks and other financial institutions face incipient failure and so they drastically decrease their lending activities.

Answer to Question 2

D


vHAUNG6011

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

lindahyatt42

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Reply 3 on: Yesterday
:D TYSM

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