Question

Which of the following may contribute to the development of a banking crisis?

Group of answer choices:

All of these answers

Stock market positive feedback loops

Regulatory failure

Bank runs

Answer 1

All of these answers

(the sentence "development of a banking crisis" means circumstances which promotes banking crisis).

Regulatory failure leads to the development of a banking crisis. Regulatory failure means system failure, if there is system there would be violation of banking honour code, least regulation of government and federal bank and so on. Which ultimately contribute and promote development of a banking crisis.

Bank runs & Stock market positive feedback loopsa also leads to banking crisis.