ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
9. The causes of the European banking and sovereign debt crisis included
(a) The creation of the "euro" monetary union was not accompanied by a banking union and banks started operating as regional banks while their safety was guaranteed by national governments.
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(b) The European Central Bank was not given adequate powers to act as a real central bank.
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(c) The rules constraining fiscal policy budget deficits became ineffective after the governments of the two largest economies in the euro zone violated the rules.
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(d) All the above.
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(e) Only (a) and (b) are true.
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