Final answer:
Financial institutions that are potentially "too big to fail" are a source of systemic risk for the economy.
Step-by-step explanation:
Financial institutions that are potentially "too big to fail" are a source of systemic risk for the economy.Systemic risk refers to the risk of a widespread disruption or collapse of the entire financial system, which can have severe consequences for the economy as a whole. When financial institutions are perceived as too big to fail, it means that their failure could have systemic implications and potentially lead to a domino effect, causing other institutions to fail as well.During the 2008-2009 financial crisis, the failure of some large financial institutions posed a systemic risk, as their collapse threatened the stability of the entire financial system, leading to a severe economic recession.