Which of the following is false?

Select one:

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

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

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

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

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