Financial Economics multiple choice questions only one alternative is correct to each picture

21) Financial crises A) cause failures of financial intermediaries and leave only securities markets to channel funds from savers to borrowers. B) are a recent phenomenon that occur only in developing countries. C) invariably lead to debt deflation. D) all of the above E) none of the above. 22) In an advanced economy, a financial crisis can begin in several ways, including A) mismanagement of financial liberalization or innovation B) asset pricing booms and busts. C) an increase in uncertainty caused by failure of financial institutions. D) all of the above. 23) What is a credit boom? A) An explosion in a credit cycle, which can increase or decrease lending in the short-run B) Essentially a lending spree on the part of banks and other financial institutions C) When credit card receivables rise due to low initial interest rates D) The signal of the end of a credit spree, with credit contracting rapidly 24) The process of deleveraging refers to A) cutbacks in lending by financial institutions. B) a reduction in debt owed by banks. C) both A and B D) none of the above