Problem
1. How does asymmetric information help us define a financial crisis?
2. Why is a financial crisis likely to lead to a contraction in economic activity?
3. Describe the three factors that commonly initiate financial crises and explain how each one contributes to a crisis.
4. What causes bank panics and why do they worsen financial crises?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.