Multiple Choice
Systemic risk is:
A) the risk of contagion that occurs when a failing financial institution owes significant sums of money to other financial institutions.
B) a risk that is limited to a specific sector only.
C) the risk of a bubble in the entire asset pricing system.
D) the risk that,when a financial institution fails,its depositors will not only lose their money but also their trust in the monetary system.
Correct Answer:
Verified
Correct Answer:
Verified
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