Economics Supply And Demand Questions
A financial crisis refers to a situation in which there is a disruption or breakdown in the financial system of a country or globally. It is characterized by a severe contraction in the availability of credit and liquidity, leading to a sharp decline in asset prices, widespread bankruptcies, and a significant economic downturn. Financial crises can be triggered by various factors such as excessive speculation, unsustainable levels of debt, banking system failures, or external shocks. These crises can have far-reaching consequences, including a decline in economic growth, high unemployment rates, and social and political instability.