Pearson eText Economics of Money, Banking and Financial Markets, The, Business School Edition -- Instant Access (Pearson+)
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Chapter 1, Problem 8Q
To determine

The reasons and relativity of financial crisis in the US and Europe in recent times

Concept Introduction:

Financial crisis is an economic situation in which there is a severe dearth of liquidity as the money available is withdrawn from the banks forcing the banks to sell-off their other investments to cover the shortfall. It is a situation where the demand for money exceeds the supply of money.

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