The Financial System Is Inherently More Unstable Than Most Other

question 30

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:

Romantic Relationships

Emotional and intimate relationships that involve a significant degree of physical and emotional bonding between partners.

Authoritarian Style

A parenting or leadership style characterized by strict rules, high expectations, and minimal warmth or nurturing.

Parenting

The process of promoting and supporting the physical, emotional, social, and intellectual development of a child from infancy to adulthood.

Authoritative Homes

Households that are structured around consistent rules and guidelines, yet are supportive and responsive to children's needs.