Systemic effects arise when:
A) changes result from government legislation.
B) market-wide changes in share prices come from the economic system.
C) an announcement is made regarding the future prospects of a particular company.
D) the takeover of a large public company is announced.

Question

Quizplus · Accepted Answer

Systemic effects refer to market-wide changes and fluctuations that arise from the economic system as a whole, rather than changes that are specific to individual companies or government regulations. Market-wide changes in share prices are examples of systemic effects.

Systemic Effects Arise When