Multiple Choice
Which of the following is true?
A) Financial intermediation inherently involves risk and although risk can be reduced, it can never be eliminated.
B) The layering of payments opens the possibility that a random default will set off a chain reaction of multiple defaults.
C) A recession can cause a financial crisis but a financial crisis can never cause a recession.
D) Both a and b are true.
Correct Answer:
Verified
Correct Answer:
Verified
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