A major risk of using a financial institution is that investors can be unable to withdraw money when they need it. This can happen in situations like bank runs or liquidity crises. While all the options mention valid concerns, the inability to access funds when needed often poses a significant practical risk for individuals relying on financial institutions.
Question
What is a major risk of using a financial institution?
(1 point)
Responses
The financial institution may fail entirely.
The financial institution may fail entirely.
Financial institutions may choose not to pay investors back.
Financial institutions may choose not to pay investors back.
Investors can be unable to withdraw money when they need it.
Investors can be unable to withdraw money when they need it.
Insurance will not cover any losses incurred by a financial institution.
1 answer
1 answer