Banks fail when they invest in long-term assets that subsequently fall in price.what are the two views on why asset prices fluctuate so much that they lead to financial crises and bank failures?

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The two views on why asset prices fluctuate so much that they lead to financial crises and bank failures are One view holds that asset prices are rationally based on fluctuating fundamentals, while the other asserts that psychological factors and biases play a significant role.

Belongings are labeled as either real, economic, or intangible. All belongings can be stated to be of financial cost to an employer or an individual. If it has a fee that can be exchanged for cash, the item is taken into consideration as an asset. Intangible assets are precious property that isn't physical in nature.

Something or a person that is an asset is taken into consideration as beneficial or helps someone or a company to be successful. Our creativity inside the field of the era is our finest asset. plural noun. The property of a company or a person is all the things that they very own.

In spite of all that thoughts, a car is an asset due to the fact you could quickly market it and convert it to coins, albeit for much less than what you paid. That on my own makes it an asset through definition. it is the delivered costs and the steady decline in fees that make a vehicle a depreciating asset.

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