The Financial System Is Inherently More Unstable Than Most Other

question 4

Multiple Choice

The financial system is inherently more unstable than most other industries due to the fact that:

• A) while in most other industries customers disappear at a faster rate, in banking they disappear slowly so the damage is done before the real problem is identified.
• B) banks deal in paper profits, not in real profits.
• C) a single firm failing in banking can bring down the entire system; this isn't true in most other industries.
• D) there is less competition than in other industries.

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Definitions:

Purpose of Behaviour

The underlying reason or motive for why a specific action or behavior is performed by an individual.

Behaviourist

A psychological approach focusing on observable and measurable behaviors, discouraging speculation about internal mental processes.

Aggressive or Non-Aggressive

A classification that denotes whether actions, thoughts, or attitudes are intended to harm or are non-harmful in nature.

Behaviourist Analysis

An approach to psychology focusing on observable behaviors and the ways they're learned, rather than on internal mental states.