Question: Systemic risk is present when: A.the U.S. government defaults on Treasury securities. B.the Fed increases the money supply when it should decrease it. C.a bank

Systemic risk is present when:

A.the U.S. government defaults on Treasury securities.

B.the Fed increases the money supply when it should decrease it.

C.a bank or other financial institution acts recklessly, hoping that the Fed and regulators will later bail them out.

D.the failure of one financial institution will bring down other institutions as well.

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