A large firm that is highly interconnected with others can be a source of __________, which is the possibility that an event at the firm could trigger severe instability in financial markets or the collapse of an entire industry or economy.

Question

Quizplus · Accepted Answer

Systemic risk refers to the possibility that an event at a highly interconnected firm could trigger severe instability or collapse in financial markets, an industry, or the economy.

A Large Firm That Is Highly Interconnected with Others Can