Chapter EMA, Problem 4MCQ

To determine

To state: The term that is used for a sudden and widespread disruption of the financial market.

Answer to Problem 4MCQ

The correct option is B i.e., financial crisis.

Financial crisis is often regarded as a mixture of events, including considerable changes in asset prices and credit volume, severe disturbances in financial intermediation, large-scale balance sheet difficulties, especially the supply of external financing, and the requirement for large-scale government help.

So, the term that is used for a sudden and widespread disruption of the financial market is Financial crisis.

Explanation of Solution

Financial crisis is often regarded as a mixture of events, including considerable changes in asset prices and credit volume, severe disturbances in financial intermediation, large-scale balance sheet difficulties, especially the supply of external financing, and the requirement for large-scale government help.

So, the term that is used for a sudden and widespread disruption of the financial market is Financial crisis.

Economics Concept Introduction

Introduction:

Financial crisis is often regarded as a mixture of events, including considerable changes in asset prices and credit volume, severe disturbances in financial intermediation, large-scale balance sheet difficulties, especially the supply of external financing, and the requirement for large-scale government help.