The GFC

Multiple Choice

The GFC:

A) prompted a 'flight to quality' that pushed up the interest rate on government securities
B) caused a sharp contraction in lending that prevented many firms from being able to refinance their maturing debt
C) prompted the US government to 'bail-out' financial institutions, including Lehman Brothers
D) reinforced the view that markets are 'self-correcting'
E) lead to widespread failures of financial institutions in Australia.