Most U.S. financial crises have started during periods of ________ either after the start of a recession,a stock market crash,or the failure of a major financial institution.
A)high uncertainty
B)low interest rates
C)low asset prices
D)high financial regulation

Question

Quizplus · Accepted Answer

Most financial crises are caused by high uncertainty, often driven by external events such as geopolitical tensions, natural disasters, or unexpected changes in policy. These events can trigger a chain reaction of panic, fear, and uncertainty that leads to a sudden and sharp decline in investor confidence and liquidity, which can ultimately result in a financial crisis. Low interest rates, low asset prices, and high financial regulation can also contribute to financial instability, but they are not the primary causes of most financial crises.

Most US Financial Crises Have Started During Periods of ________ Either