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EXPLAIN DYNAMICS OF FINANCIAL CRISES
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Solved in 2 steps
- Explain the reasons for the emergence of financial crises in the world and what measures were taken to overcome the crisis.Explain the role of financial innovation and the role of regulation in the generation of a financial crisis.With reference to examples, discuss the main causes of financial crises in emerging markets.
- what are factors that contribute to a financial crisis.Describe three steps of Dynamics of Financial Crises in Emerging Market Economies.Analysis of how the actions of financial intermediaries can result in an economic crisis e.g., the securitisation of mortgages and development of subprime mortgages (market) and the role of intermediaries in recovery
- List any six categories of factors that could cause a financial crisis.How does a general increase in uncertainty as a resultof the failure of a major financial institution lead to anincrease in adverse selection and moral hazard problemWhat are the causes and impact of financial crisis 2007 – 08 on world economy with special reference to the Indian economy.