📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    Systemic risk is the risk due

    to
    A Failure of a bank due to non-compliance with regulations Correct Answer Incorrect Answer
    B Contagion effect leading to failure of a group of banks Correct Answer Incorrect Answer
    C Bankruptcy of one bank leading to failure of few more banks Correct Answer Incorrect Answer
    D Failure of a bank due to slippages in internal systems of the bank Correct Answer Incorrect Answer
    E Failure of entire banking system Correct Answer Incorrect Answer

    Solution

    Systemic risk refers to the risk of a breakdown of an entire system rather than simply the failure of individual parts. In a financial context, it denotes the risk of a cascading failure in the financial sector, caused by linkages within the financial system, resulting in a severe economic downturn

    Practice Next
    More Financial Management Questions

    Relevant for Exams:

    ask-question