Recall Application 3, "The Financial System Under Stress: September 11, 2001," to answer the following questions:
-The potentially catastrophic financial impact of the September 11, 2001, terrorist attacks against the United States was due to:

Question

Quizplus · Accepted Answer

The potential financial impact of the September 11th attacks was due to the risk of massive default resulting from the forced closing of financial institutions. This was due to the inability of financial institutions to operate and provide liquidity to the markets, which could have resulted in a domino effect of defaults and failures throughout the financial system. While the other options may have contributed to the stressful financial situation, they were not the primary cause of the potential catastrophic impact.