Question

Do financial crises tend to have similar causes? Please explain.

Answer 1

Financial crisis are always tend to have similar causes because-

(A) all financial crisis are arising out from mismanagement of financial system and other important sectors of economy.

(B)all financial crisis are caused due to inability of the central bank to deal with appropriate policy structure in the past.

(C)all financial crisis will lead to a contagian in the entire economy leading to a widespread collapse of multiple financial organisations and other establishment

(D) all financial crisis will lead to the bailout packages and other stimulus by central banks and Central Government

(E) all financial crisis will have growth in the economy and lack of demand to meet the supply of the industries

(F) all financial crisis is caused by misappropriation of the books of accounts and modification of the accounting policies as per their advantage by organisations.

(I) all financial collapses has been caused by negligence of the regulatory authorities like security and exchange commission who were not proactive in their reactions

So it can be said that financial crisis are having similar causes always.