The Potential Problem Faced by the Rest of Europe in the Event

question 63

Multiple Choice

The potential problem faced by the rest of Europe in the event of a Greek debt default is:

• A) the inability of the European Central Bank to conduct open market operations.
• B) the risk of banks holding Greek debt becoming insolvent.
• C) an increase in the number of U.S. dollars traded per euro in the foreign exchange market.
• D) the strain on the European banking system, while banks in the rest of the world would be unaffected.

---

Definitions:

Work Life

The aspect of a person's daily life that involves their professional or occupational activities, often balanced with personal life.

Lie

The act of communicating something that is not true, often with the intent to deceive.

Supply

The total amount of a product or service available for purchase at any given time and price in a market.

Prices

The amount of money expected, required, or given in payment for something.