All of the following contributed to recent financial crises except:
A) Focusing on earnings instead of cash flow.
B) Focusing on the short run.
C) Relying on the efficiency of financial markets.
D) Excessive risk taking due to underestimation of risk.

Question

Quizplus · Accepted Answer

Relying on the efficiency of financial markets is not typically cited as a direct cause of recent financial crises. However, the other options (focusing on earnings over cash flow, focusing on the short run, and excessive risk taking due to underestimation of risk) are commonly cited as factors that led to financial crises in the past.

All of the Following Contributed to Recent Financial Crises Except