Systemic risks are most likely to exist with regard to

A. small governments.
B. large governments.
C. small financial institutions.
D. large financial institutions.


Answer: D

Economics

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Which of the following statements about the characteristics of debt and equity is FALSE?

A) They can both be long-term financial instruments. B) They can both be short-term financial instruments. C) They both involve a claim on the issuer's income. D) They both enable a corporation to raise funds.

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Cost-push inflation is most likely to occur during a period of

a. falling input costs b. falling unemployment c. rising input costs d. military expansion e. military contraction

Economics

At a price of $1.00, a local coffee shop is willing to supply 100 cinnamon rolls per day. At a price of $1.20, the coffee shop would be willing to supply 150 cinnamon rolls per day. Using the midpoint method, the price elasticity of supply is about

a. 0.45 b. 0.90 c. 1.11 d. 2.20

Economics

The marginal benefit of additional information:

A. is independent of the amount of information that has already been acquired. B. rises as more information is collected. C. falls as more information is collected. D. tends to be lower for expensive items than inexpensive items.

Economics