The Risk to the Entire Payments System Due to the Inability

question 92

Multiple Choice

The risk to the entire payments system due to the inability of one financial institution to fulfill its payment obligations in a timely fashion is known as ________.

• A) systemic risk
• B) the principal-agent problem
• C) moral hazard
• D) credit risk

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Definitions:

Respiratory System

The biological system consisting of specific organs and structures used for gas exchange in animals and plants.

Endomorph

A body type characterized by a predominance of body fat, a soft and round physique, and difficulty losing weight.

Ectomorph

A somatotype characterized by a predominance of linearity and fragility, with a body composed of light bone structure and little body fat or muscle.

Mesomorph

A body type characterized by a muscular build, well-defined muscles, and a high metabolism.