GATE EC 2020 Set 1 — Question 6

Let's break down the passage to identify the chronological order of events: This indicates that the East Asian crisis happened first and led to the excess liquidity that contributed to the sub-prime lending crisis. The sub-prime lending crisis followed the East Asian crisis. The banking crisis followed the sub-prime lending crisis. The global financial crisis is the overarching event that started with the sub-prime lending crisis and was closely linked to the banking crisis.Combining these points, the correct sequence of events is:
East Asian crisis $\rightarrow$ Subprime lending crisis $\rightarrow$ Banking crisis $\rightarrow$ Global financial crisis.Comparing this with the given options:
(A) East Asian crisis$\rightarrow$ subprime lending crisis $\rightarrow$ banking crisis$\rightarrow$ global financial crisis. - This matches our derived sequence.
(B) Subprime lending crisis$\rightarrow$ global financial crisis$\rightarrow$ banking crisis$\rightarrow$ East Asian crisis. - Incorrect order.
(C) Banking crisis$\rightarrow$ subprime lending crisis$\rightarrow$ global financial crisis $\rightarrow$ East Asian crisis. - Incorrect order.
(D) Global financial crisis $\rightarrow$ East Asian crisis $\rightarrow$ banking crisis $\rightarrow$ subprime lending crisis. - Incorrect order.The final answer is $\boxed{A}$