Which of the Following Does Not Help Explain Why Financial

question 4

Multiple Choice

Which of the following does not help explain why financial crises occur?

• A)the inherent risk of financial intermediation
• B)the low savings rate in the United States
• C)the layering or interconnectedness of financial claims
• D)sophisticated global electronic funds transfers

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Definitions:

Accredited Process

A formal recognition procedure that ensures a service, organization, or program meets predefined standards.

Breach of Contract

Breaching any term of a contract, whether it be in writing or oral, without an appropriate legal defense.

Negligent Performance

Failure to act with the competence or care that is expected in a given professional role, leading to harm or damage.

Duty of Care

Duty of care is a legal obligation that requires individuals or organizations to adhere to a standard of reasonable care while performing acts that could foreseeably harm others.