the deterioration in the balance sheet of financial institutions during the initial phase of a financial crisis is the result of a) fewer resources to lend resulting in a decline in lending. b) a loss of information production in financial markets creating increases in asymmetric information problems. c) a substantial contraction in their capital. d) a and b e) all the above

Question

20-12-2022
Business

contestada

the deterioration in the balance sheet of financial institutions during the initial phase of a financial crisis is the result of a) fewer resources to lend resulting in a decline in lending. b) a loss of information production in financial markets creating increases in asymmetric information problems. c) a substantial contraction in their capital. d) a and b e) all the above

Respuesta :

Otras preguntas

For june, gold corp. estimated sales revenue at $600000. it pays sales commissions that are 4% of sales. the sales manager's salary is $285000, estimated shippi

10 points! Which term refers to retaining a false opinion about someone despite knowing facts about the person that are contrary to the opinion? A) bias B) disc

Select ALL the correct answers. Ms. Simon uses six different colored pens to grade papers. She has one of each of the following colors: red, purple, green, blue

One of the worst misconceptions of the field of gifted education is a. the idea that gifted students are more likely to be bullies. b. the idea that gifted stud

Evaluate. 5^2+7⋅3+4 plz help

sciencists thing past changes in climate have been caused by____.

1. Which of the following was not a provision of the National Energy Act? A. taxed low-mile-per-gallon automobiles B. removed priced controls on domestic oil an

Andrew works at a local company, and he receives an annual salary of $48,200 and is paid biweekly. His employer deducts $222.46 each pay period for federal with

Which Of The Following Was A Major Problem For The United States In The Late 1970’s?

please help and explain

ACCESS MORE

smecloudbird17 smecloudbird17 · Answer 1 · 2022-12-26T23:19:21+01:00

The deterioration in the balance sheet of financial institutions during the initial phase of a financial crisis is the result of a lack of lending assets.

Hence, the right option is a.) fewer resources to lend resulting in a decline in lending.

Asset values endure a sharp decrease in value during a financial crisis, firms and individuals are unable to pay their loans, and financial institutions face a shortage of liquidity.

During a panic or bank run, investors sell off their assets or withdraw cash from savings accounts out of fear that their value will decline if they keep them in a financial institution. This is a common feature of financial crises.

The bursting of a financial bubble, a stock market crash, a sovereign default, or a currency crisis are further circumstances that could be classified as a financial crisis.

To learn more about Financial crisis visit:

https://brainly.com/question/18894846

#SPJ4