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:

Early Retirement Incentives

Programs or benefits offered by employers to encourage employees to voluntarily retire before the traditional retirement age, often as a cost-saving measure or to refresh the workforce.

Opposition

The action of resisting or contesting policies, decisions, or other positions within a group or organization.

Retaliation

Actions taken by an employer or individual in response to a complaint or grievance, intended as punishment or retribution.

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.