The Eurozone Crisis was initiated by an international banking crisis. an attack

Question

The Eurozone Crisis was initiated by an international banking crisis. an attack on the value of the euro through currency speculation a depreciation of the euro that a balance of payments crisis. a large sale of euro-denominated reserve assets held by China. QUESTION 19 The Eurozone Crisis was resolved by an appreciation of the Euro. the establishment of centralized deposit insurance for members of the Eurozon e. expansionary fiscal policy in several European nations an emergency loan from the IMF and changes to banking policies in Europe QUESTION 20 Which of the following statements describe a condition that contributes to a "doom loop" for national banking systems? Central banks have too much autonomy from the national legislature. Central banks print more money in order to reduce national debt. Central banks provide funds to insolvent private ban ks. There is a crises of confidence in the solvency of a central bank.

Explanation / Answer

Ans:

18) an international banking crisis.

The growing level of structural deficits required bailout and which led to rising interest rates. Thus causing a banking crisis.

19) an emergency loan from the IMF and changes to banking policies in europe.

The eurozone crisis was resolved by serious of bailouts with funds from IMF and bring changes to banking policies in europe.

20) Central bank provides funds to insolvent private banks.

The doom loop is a situation in which central bank provides funds to insolvent private banks.

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