Fair value accounting is widely touted as a means to avoid future financial crises as it will prevent banks from collapsing.

Question

Quizplus · Accepted Answer

Fair value accounting is not a foolproof method to prevent future financial crises. While it provides more transparency and accuracy in financial reporting, it is not a guarantee against bank failures or economic downturns. Other factors such as inadequate regulations, risky lending practices, and macroeconomic conditions can still contribute to financial crises.

Fair Value Accounting Is Widely Touted as a Means to Avoid