Systemic Risk Is Present When

question 105

Multiple Choice

Systemic risk is present when:

• A) a bank or other financial institution acts recklessly,hoping that the Fed and regulators will later bail them out.
• B) the U.S.government defaults on Treasury securities.
• C) the failure of one financial institution will bring down other institutions as well.
• D) the Fed increases the money supply when it should decrease it.

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