Set 3 — Read the Passage

📄 Passage

The global financial system is __1__ on a network of interdependent institutions whose failure can trigger cascading consequences. The 2008 crisis demonstrated how the __2__ of complex financial instruments — particularly mortgage-backed securities — could mask systemic risk until it became __3__. Regulatory bodies had largely failed to __4__ with the pace of financial innovation, leaving oversight frameworks dangerously outdated. __5__ banks were allowed to operate with insufficient capital reserves, the stage was set for catastrophic collapse. Governments were ultimately compelled to __6__ the failing institutions, a decision that __7__ considerable public controversy. The episode exposed a fundamental __8__ in the prevailing doctrine of self-regulating markets. Economists now argue that financial stability is a public __9__ that cannot be left __10__ to market forces.