Systemic risk is:
A)risk that is broadly shared by the entire market or economy.
B)risk that is unique to a particular company or asset.
C)likely to be predictable,and generally reflected in interest rates.
D)the reason the economy suffers inflation from time to time.

Question

Quizplus · Accepted Answer

Systemic risk refers to the risk that affects the entire market or economy, rather than being specific to an individual company or asset. This risk is not always predictable and can lead to widespread economic disruption or even financial crises. For example, the global financial crisis in 2008 was largely caused by the interconnectedness of financial institutions and their exposure to risky mortgages, resulting in a systemic risk that threatened the entire financial system.

Systemic Risk Is