Impact of Financial Panic on Economy

1 FINANCE MCQS

Financial panic that causes large public losses can lead to ___________?

Serious damage to the economy
Problems for investors
Withdrawal of funds
Soundness of institutions

Correct Answer: A. Serious damage to the economy

Detailed Explanation

A financial panic occurs when there is a sudden loss of confidence in financial institutions or markets, leading to massive withdrawals and market disruptions. This can cause liquidity crises, collapse of businesses, and ultimately result in serious damage to the economy as a whole.

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Financial panic that causes large public losses can lead to ___________?

Financial panic that causes large public losses can lead to ___________?

Detailed Explanation

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…