The Potential for a Financial Breakdown at Large Institutions to Spread

question 497

Multiple Choice

The potential for a financial breakdown at large institutions to spread throughout the financial system is called

• A) a systemic risk.
• B) a too-large-to-fail problem.
• C) an averse selection problem.
• D) a moral hazard.

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Definitions:

Polygamy

A mating system where an individual has multiple mates during one breeding season, commonly observed in many animal species.

Nuptial Gifts

Items or food provided by one individual to another within a mating context, often influencing mate choice and reproductive success.

Good Genes

A theory in sexual selection suggesting that individuals with certain desirable genetic qualities are more attractive to potential mates, contributing to better offspring survival.

Sensory Bias

A phenomenon in which preferences that evolve in one context, such as foraging, incidentally shape mate preferences, influencing sexual selection.