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Question: 1 / 400

What is the greatest risk to ABC Company due to XYZ Bank's recent financial problems?

Damage to their working relationship

Deterioration of service quality

Increase in service fees

Loss of assets

The greatest risk to ABC Company resulting from XYZ Bank's recent financial problems is the potential loss of assets. When a financial institution faces significant difficulties, there is a heightened risk that their operational stability could be compromised. This raises concerns regarding the safeguarding of customer funds and other assets held by the bank. If the bank encounters insolvency or is forced to liquidate, ABC Company may find its deposits and other investments at risk, potentially leading to direct financial loss.

While damage to the working relationship, deterioration of service quality, and increased service fees may also be concerns, they do not pose the same immediate and tangible risk to ABC Company's financial health. The loss of assets is critical because it directly affects the company's liquidity and overall financial stability. As such, maintaining secure, reliable access to financial resources is paramount for any company, making this risk the most significant in the context of XYZ Bank's issues.

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