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    Financial Markets and Institutions Study Set 1
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    Exam 18: Financial Regulation
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    The Possibility That the Failure of One Bank Can Hasten
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The Possibility That the Failure of One Bank Can Hasten

Question 23

Question 23

Multiple Choice

The possibility that the failure of one bank can hasten the failure of other banks is called the


A) bank run effect.
B) moral hazard effect.
C) contagion effect.
D) adverse selection effect.

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