When any financial institution develops serious problems that reach public notice, the public's confidence in other financial institutions may be damaged as well. The result can be as follows:
A) A smaller flow of savings through all financial institutions
B) Restrictions on the availability of credit
C) Fewer jobs
D) Slowed economic growth
E) All of the above

Question

Quizplus · Accepted Answer

When a financial institution faces serious problems, it can lead to a loss of public confidence in the financial system as a whole. This can result in a reduced flow of savings through financial institutions, restrictions on the availability of credit, fewer jobs due to decreased investment and spending, and ultimately slowed economic growth. All these outcomes are interconnected and can affect the economy broadly.

When Any Financial Institution Develops Serious Problems That Reach Public