What is financial crisis? What causes financial crisis? Is it possible it could happen again? Give example.

Q: List and discuss the various reasons that contributed to the financial crisis that occurred in 2008

A: 4. The 2008 financial crisis can be largely traced to the burst of the housing bubble. The banks…

Q: Briefly discuss the reasons behind the global financial crisis in 2007 -2009.

A: Reasons behind the global financial crisis in 2007-2009: Global financial crisis took place because…

Q: List and discuss the various reasons that contributed to the financial crisis that occurred in 2008.

A: The main reason behind the financial crisis of 2008 is due to the burst of the housing bubble. Too…

Q: explain why Emerging Market Economies plays a crucial role in the financial market

A: The countries that are in the process of becoming economies that are industrialized and have huge…

Q: What are the causes and impact of financial crisis 2007 – 08 on world economy with special reference…

A: The financial of 2007-08 started in US and rapidly stretched to European Union and later to other…

Q: What is the 2008 financial crisis. What are its causes and effects?

A: The 2008 financial crisis was an economic crisis that started in the USA and then spread to the…

Q: What is leverage, and why is it so important in understanding the financial crisis?

A: Leverage: The term leverage refers to the practice of investment by taking loans and borrowings. A…

Q: How do we prevent another financial crisis like the housing disaster one that struck countless…

A: The financial crisis of 2008 was the result of subprime lending. In 2008, when the credit default…

Q: What do you think prevented the financial crisis of2007–2009 from becoming a depression?

A: The financial crisis of 2007-2008 or the Great Recession was a period of a severe economic downturn…

Q: “Fat finger” trades are sometimes blamed as the cause of “flash crashes” in financial markets. What…

A: What is a Flash Crash?  A flash crash can be defined as an occasion in electronic protections…

Q: “Financial intermediaries play a crucial role in an economic crisis–they are responsible for both…

A: A financial intermediary is an entity that acts as the middleman between two parties in an…

Q: Explain how financial crises lead to a credit crunch and a recession

A: The financial crisis refers to the situation of failure of financial system of an economy due to any…

Q: What’s the difference between a liquidity crisis and a solvency crisis? When Lehman Brothers went…

A: Liquidity can be defined as the ability of businesses or organisations to pay off its current…

Q: Brief description of a named economic crisis e.g., 2007 to 2010 financial crisis.

A: Financial crisis affects the entire economy. Finance is considered foremost part of economy. Crisis…

Q: How a decline in housing prices can trigger the subprime financial crisis in advanced economics?

A: In the advanced economies, people generally experiences stable market that allow them to make…

Q: Why aren't more resources being allocated to sufficient prudential oversight of the financial system…

A: Countries where there are more working women, quantity of workers is more.  People who are working…

Q: What is the relation between social economic and the financial crisis? What is the impact of…

A: Solution: Economics: It is the study of understanding different aspects of economy.  Economy: It is…

Q: Why do credit spreads risesignificantly during a financial crisis?

A: Credit Spread refers to the difference in the yield obtained on financial fixed income instruments…

Q: Explain the role of financial innovation and the role of regulation in the generation of a financial…

A: A financial system consists of legal rules, firms, and markets, with the financial firms including,…

Q: Why do bubbles form, and how can they turn into financial crises?

A: When one or more major financial assets, such as stocks, real estate, or oil, lose a significant…

Q: many people keep their savings in the piggy banks, it does not help the financial system to function…

A: Banks and other financial institutions give amazing chances to saving and contributing by people,…

Q: and explain the reasons of financial crisis 2008-2009. (at least 4)

A: The financial crisis in 2008 -09  was caused by financial industry deregulation and fraud in the…

Q: What are the two basic causes of financial crises inemerging market economies?

A: When the developing nation or economy engages more and more in global market it is termed as…

Q: How do economists define equilibrium in financial markets?

A: The price is the difference between what providers receive and what demanders pay in any market.…

Q: How do financial markets help the economy? What are the key financial tools for the macroeconomy?

A: Macroeconomics is the study of aggregate of the economy. It was first derives by the economist…

Q: Explain why unemployment rate is getting increase in financial crisis?

A: Cyclical unemployment refers to the unemployment that is caused due to changes in the business…

Q: Introduction to the global financial crisis 2008

A: Trade is the concept that explains the buying and selling of goods and services in exchange for…

Q: explain why an increase in financial frictions is a keyelement in financial crises

A: A financial crisis is a situation when the financial assets and instruments like real estate and…

Q: Define the term financial crisis.

A: Financial crisis is the situation where the value of assets falls drastically such as stock market…

Q: What were the implications of the crisis on the financial industry? (Savings and Loans crisis in the…

A: The Savings and Loan Crisis (S&L) was a long-drawn-out financial crisis. Between 1986 and 1995,…

Q: Cite reasons why lenders are exercising caution when extending credit to borrowers during a…

A: \With the monetary development seriously affected, optional spending across families has diminished…

Q: What are the factors that typically cause a financial crisis?

A: The financial crisis is a situation in the economy in which the price of asset decline steeply,…

Q: Give two examples each of revenue eceipts and capital receipts in a financial pudget.

A: According to the given question Financial budget in economics is known as a budget which predicts…

Q: Explain the concept of "too big to fail." Relate this to the 2008 financial crisis.

A: The global financial crisis (GFC) of 2007–2008 was a severe global economic downturn. Many…

Q: What is the primary reason of the occurence of Global Financial Crisis of 2008

A: The financial crisis 2007-08 was primarily caused by deregulation in the financial industry.

Q: When financial crisis hit the nation, how it can impact on the financial market and what is the…

A: A financial crisis is the market situation in which the value of the price of assets see a steep…

Q: What do you think were the main causes of the Financial Crisis?

A: In a financial crisis, asset expenses see a steep decline in price, companies and customers are…

Q: In terms of the financial crisis of 2007 and 2008, what were the factors that led to the mortgage…

A: Answer in step 2

Q: What do you think should be done to prevent another global financial crisis?

A: Financial crisis are results from the systemic failures, regulatory absence, pandemic, unanticipated…

Q: Explain the events that transpired in the 2008 financial crisis.

A: A recession is a time of financial withdrawal, where organizations see less interest and start to…