1-32 The adverse effects on the economy that can occur because of major disturbances to the special functions or services provided by financial institutions are negative externalities.

Question

Quizplus · Accepted Answer

Adverse effects on the economy due to disturbances in financial institutions' specialized functions or services are considered negative externalities, meaning they are unintended side effects of economic activity that harm individuals or society as a whole.

1-32 the Adverse Effects on the Economy That Can Occur