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:

Retina

A light-sensitive layer of tissue at the back of the eye that converts light into electrical signals, which are sent to the brain to produce vision.

Blindsight

A condition in which individuals can respond to visual stimuli in their blind spots without consciously perceiving them.

Stroke Victim

An individual who has experienced a stroke, a medical condition caused by disruption in blood flow to the brain, resulting in cell death and potentially permanent damage.

Coffee Table

A low table designed to be placed in a sitting area for convenient support of beverages, remote controls, magazines, books, decorative objects, and other small items.