Systemic effects arise when:
A) the shares of a deceased estate are sold to enable a distribution to be made to beneficiaries.
B) market-wide changes in share prices come from the economic system.
C) an announcement is made regarding the future prospects of a particular company.
D) the takeover of a large public company is announced.

Question

Quizplus · Accepted Answer

Systemic effects refer to market-wide changes that affect the entire economic system. Therefore, when there is a market-wide change in share prices, it can be considered a systemic effect.

Choices A, C, and D do not necessarily involve market-wide changes and are more specific to individual companies or estates.

Systemic Effects Arise When