ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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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.
   
(b) The European Central Bank was not given adequate powers to act as a real central bank.
   
(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.
   
(d) All the above.
   
(e) Only (a) and (b) are true.
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