The Financial System Is Inherently More Unstable Than Most Other

question 4

Multiple Choice

The financial system is inherently more unstable than most other industries due to the fact that:

• A) while in most other industries customers disappear at a faster rate, in banking they disappear slowly so the damage is done before the real problem is identified.
• B) banks deal in paper profits, not in real profits.
• C) a single firm failing in banking can bring down the entire system; this isn't true in most other industries.
• D) there is less competition than in other industries.

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Definitions:

Terminates

Brings to an end or concludes an agreement, contract, or employment relationship.

Assigns

Individuals or entities to whom rights or properties are legally transferred.

Landlord's Consent

Permission given by a landlord, often required for specific actions by a tenant, such as subletting or altering the property.

Exclusive Right

A legal provision granting a party sole permission to use, produce, or sell a particular product or service.