the economics of money, banking, and financial markets

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Economics of Money, Banking & Financial Markets, 5e (Mishkin)
Chapter 9 Financial Crises

9.1 What is a Financial Crisis?

1. 
   

   A major disruption in financial markets characterized by sharp declines in asset prices and
   firm failures is called a ____.
   A) financial crisis
   B) fiscal imbalance
   C) free-rider problem
   D) "lemons" problem
   Answer: A
   Diff: 1 Type: MC Page Ref: 182
   Skill: Recall
   Objective List: 9.1 Discuss the factors that lead to financial crises

   
   


2. 
   

   Asymmetric information problems that act as a barrier to efficient allocation of capital are
   often described as ____.
   A) financial treason
   B) financial markets
   C) financial frictions
   D) financial allocations
   Answer: C
   Diff: 1 Type: MC Page Ref: 182
   Skill: Recall
   Objective List: 9.1 Discuss the factors that lead to financial crises