Discuss the effect on stock market investor confidence

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Before you begin the Unit 5 Discussion, you should have completed your assigned reading. Please take this opportunity to consider the subject under discussion and formulate a response that answers all of the questions and fully demonstrates your understanding of the topic. To illustrate your knowledge, please take time to provide evidence that shows how you formulated your answers by citing sources to justify your response.

Systemic risk evaluates the probability and extent of negative consequences to the larger body. For example, the government has a record of intervening in the event of a probable bank failure; the government's larger concern is the negative impact on bank customers. Some call this a government bail-out.

Discuss the effect on stock market investor confidence should bank customers, individuals and businesses alike, lose access to savings and undergo a loss of future purchasing power due to a bank failure.

Reference no: EM13618798

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