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Financial Crises: True or False

Yes or No

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Test your understanding of financial crises

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Financial Crises: True or False
 

Financial Crises: True or FalseOnline version

Test your understanding of financial crises

by Iroda Muysinova
1

The phrase 'too big to fail' describes institutions whose failure could threaten the whole financial system.

2

A currency crisis can occur if a country loses confidence in its ability to defend its exchange rate.

3

The Great Depression began with the stock market crash of 1929.

4

Central banks cannot provide liquidity during crises.

5

Financial crises never lead to reforms or new regulations.

6

Bank runs, where savers withdraw funds, can deepen a financial crisis.

7

The 2007-2008 financial crisis was triggered by problems in the U.S. housing market and subprime mortgages.

8

The Great Depression started in 1939.

9

A sovereign debt crisis never affects banks.

10

The 2007-2008 crisis was caused only by a temporary stock market dip in 2000.

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