Financial panic that produce large losses for public can cause ___________?
Correct answer: A. serious damage to economy
- A. serious damage to economy
- B. problems for investors
- C. pulling of funds
- D. soundness of institutesCurrencies & Foreign Exchange
Explanation
A financial panic can trigger widespread withdrawals, falling asset values, and disruption of credit, extending beyond individual investors. Its broader consequence can therefore be serious damage to the economy.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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