logo

Impact of Global Financial Crisis Assignment

   

Added on  2020-07-22

8 Pages2345 Words69 Views
Global FinancialCrisis
Impact of Global Financial Crisis Assignment_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Possible causes of the financial crisis.....................................................................................1Scale and mipact of global financial crisis.............................................................................3REFERENCES................................................................................................................................6
Impact of Global Financial Crisis Assignment_2
INTRODUCTIONGlobal Financial Crisis is the most crucial word which make world to think differently.However, this can be said that financial emergency does not arise in just recent years. But thiscame up to 1929 which incorporated the great depression. Great depression was terrible globally.Financial depression emerged at the time of 1930s, which emerges in the US. The Greatdepression changed throughout nations; in of the nations it introduced in 1929 and that wasgoing to 1941. This was the longest depression of 20th century. In 21st century, the greatdepression is regularly implemented as an example of how far the global economy couldemerged.Possible causes of the financial crisisThe depression begin in US later on a great fall in the prices of stock that started around1929 in September , and became global information with the crash of stock market in Octoberbetween 1923 and 1932, global GDP fall down by a forecasted to 15%. By compare, global GDPreduce by 1 percent between 2008 to 2009 during depression. However, this can be said thatmost of the countries were trying to recover by mid 1930s. Although, in most of the nations,adverse effects of great depression were continue to be gone till world war second (GlobalFinancial Crisis, 2017). That depression devastated the poor and developed economy very badly, and US had themajor adverse impacts as personal income, profits and prices fell down during global tradedropped out by more than 50%. Unemployment rate was rose to 25% in the US and this was roseto 33%.The GFC is considered as worst global financial crisis which was occurred due toderegulation in the financial industry. It freezes the loaning among various banks and anotherfinancial institutions need to be saved. This is some kind of situation under which values ofassets and other financial institution decreases on a fast speed. Financial crisis is somethingwhich is relate with fear or operate a bank in which all customers and investors sold their assetsand withdraw all the money from their saving accounts. They do this with the expectations that ifthey will remain at financial institutions the this will fall down the value of their assets. Financialcrisis is something which take place when assets are overvalued and it can be change due toirrational behaviour of investor. These financial crises give rise to a recession in economy. All1
Impact of Global Financial Crisis Assignment_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
The Global Financial Crisis
|11
|2870
|36

Global Financial Crisis Essay
|10
|2717
|29

Financial Crisis and Great Depression till 1929
|7
|1462
|453

2008 Economic Crises : Report
|12
|3891
|242

Global Financial Crisis
|11
|3084
|122

Global Financial Crisis: Causes, Impacts and Reforms
|12
|3107
|295