Which of the Following Is True

question 69

Multiple Choice

Which of the following is true?

• A)Financial intermediation inherently involves risk and although risk can be reduced, it can never be eliminated.
• B)The layering of payments opens the possibility that a random default will set off a chain reaction of multiple defaults.
• C)A recession can cause a financial crisis but a financial crisis can never cause a recession.
• D)Both a and b are true.

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Definitions:

Personal Needs

Personal needs refer to the essential requirements necessary for an individual to achieve basic satisfaction, including physical, social, and psychological needs.

Need For Achievement

A psychological trait characterized by a strong desire to accomplish challenging tasks and meet high standards of success.

Maslow Hierarchy

A theory in psychology proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy from basic physiological needs to higher levels of psychological needs and self-fulfillment.

Level Of Needs

Typically refers to Maslow's hierarchy of needs, which categorizes human needs into five levels from basic (e.g., physiological) to high-level (e.g., self-actualization) needs.