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A financial crisis brought on by macroeconomic imbalances A.is usually the result of fragility in the...

A financial crisis brought on by macroeconomic imbalances

A.is usually the result of fragility in the banking sector.

B.is often preceded by capital inflows and an increase in foreign liabilities.

C.often happens to countries with strong international positions.

D.is usually inevitable given underlying conditions

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Answer #1

"A"

A financial crisis brought on by macroeconomics imbalance is usually the result of fragility in the banking sector. For example, subprime crisis in the US.

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