A Small Local Bank Failed Because a Housing Market Collapse

question 63

Multiple Choice

A small local bank failed because a housing market collapse following the departure of the area's largest employer.What type of risk applies to the failure of the institution?

• A)Firm-specific risk.
• B)Technological risk.
• C)Operational risk.
• D)Sovereign risk.
• E)Insolvency risk.

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Definitions:

Labeling Perspective

An approach in sociology that emphasizes how societal labels can affect individuals and contribute to deviance or social stigma.

Cultures

The shared beliefs, customs, arts, and institutions of a society or community that define the way of life for its members.

Norms

Societal rules that dictate the behavior expected of individuals within a group or culture.

Deviant Behavior

Actions or conduct that deviate from societal norms, values, or expectations, often resulting in disapproval or sanction.