Systemic risks are most likely to exist with regard to
A)small governments.
B)large governments.
C)small financial institutions.
D)large financial institutions.

Question

Quizplus · Accepted Answer

Large financial institutions have the potential to cause systemic risks due to their size, complexity, and interconnectedness with other institutions and markets. If one large financial institution were to fail or experience significant financial distress, it could cause a ripple effect throughout the entire financial system, leading to widespread economic instability. Small financial institutions are unlikely to pose the same level of systemic risk.

Systemic Risks Are Most Likely to Exist with Regard to