The failure of a major financial company is often a trigger for a fina

The failure of a major financial company is often a trigger for a financial crisis. The main reason for trouble at a single firm to become a crisis for the entire economy is that ________.

A) the central bank will suspend operations until the failed firm is restructured
B) it is unclear whether the firm’s collapse will remain an isolated event
C) customers of the failed company will organize a boycott to protest their losses
D) employees and owners of the failed company reduce their spending, with adverse effects on other businesses

ANSWER

B