Which of the following is false?

Select one:

A. Financial crises characterized by sharp declines in asset prices and the failures of many financial and nonfinancial firms.

B. A decrease in moral hazard at credit rating agencies has led to the U.S. financial crisis of 2007-2009.

C. When we refer to the shadow banking system, we mean hedge funds, investment banks, and other nonbank financial firms that supply liquidity.

D. In an advanced economy, a financial crisis can begin by mismanagement of financial liberalization or innovation.

E. Financial crises occur when adverse selection and moral hazard problems in financial markets become more significant.