Some members of Congress are concerned that if one or two large U.S.banks fail,it could lead to the collapse of the entire U.S.financial sector.This risk is called
A)objective risk.
B)systemic risk.
C)enterprise risk.
D)subjective risk.

Question

Quizplus · Accepted Answer

Systemic risk refers to the risk of collapse or failure of an entire system or market, as opposed to the individual securities or institutions within that system. In this case, if one or two large U.S. banks fail, it could have a ripple effect that causes the entire U.S. financial sector to collapse, highlighting the systemic risk that exists in the financial system.

Some Members of Congress Are Concerned That If One or Two