An asset-price crash occurs generally because:
A)of one big piece of bad news.
B)people expect price increases to climb forever.
C)of a panic.
D)a CEO makes a bad decision.

Name: An asset-price crash occurs generally because: A)of one big piece of bad news. B)people expect price increases to climb forever. C)of a panic. D)a CEO makes a bad decision.
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Question

Quizplus · Accepted Answer

A panic can cause an asset-price crash because it can lead to a sudden and large sell-off of assets, which can drive prices down.

An Asset-Price Crash Occurs Generally Because