Asked by Parker Elliott on Jul 26, 2024
Verified
Contagion refers to a country's financial crisis spreading to other countries through the banking system.
Contagion
The spread of economic or financial crises from one market or region to another, often accelerated by panic selling and loss of confidence.
Banking System
A network of institutions that provide financial services, including managing deposits, loans, and currency exchange.
- Examine the consequences of significant worldwide financial turmoil on global trade and finance.
Verified Answer
TA
Trexie Anne TisadoJul 28, 2024
Final Answer :
True
Explanation :
Contagion is the term used to describe the spread of a financial crisis from one country to other countries through interconnected financial systems, such as the banking system. This can lead to a global financial crisis with severe economic consequences.
Learning Objectives
- Examine the consequences of significant worldwide financial turmoil on global trade and finance.
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