At some point during the financial crisis of 2008-2009, people with uninsured deposits at financial institutions withdrew money from their accounts at those institutions. This phenomenon characterized which element of the financial crisis?
A)the decline in confidence in financial institutions
B)the credit crunch
C)the economic downturn
D)the decline in asset prices

Question

Quizplus · Accepted Answer

The withdrawal of uninsured deposits indicates a lack of trust in the stability and solvency of financial institutions, reflecting a decline in confidence.

At Some Point During the Financial Crisis of 2008-2009, People