Question

During an economic crisis, the collapse of a major systemically important bank triggers liquidity freezes across the interbank lending market, halting payment settlement systems and leading to a sharp downturn in national GDP growth. Which type of risk is best described by this scenario?

A Idiosyncratic Risk
B Systematic / Systemic / Contagion Risk
C Specific Credit Risk
D Operational Fraud Risk
E Unsystematic Business Risk
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