Tuesday, September 1, 2015

Term of the Day: Financial Crisis

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September 1, 2015
Financial Crisis

A situation in which the value of financial institutions or assets drops rapidly. A financial crisis is often associated with a panic or a run on the banks, in which investors sell off assets or withdraw money from savings accounts with the expectation that the value of those assets will drop if they remain at a financial institution.

Breaking It Down:

A financial crisis can come as a result of institutions or assets being overvalued, and can be exacerbated...

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