The Idea of a Bank Being 'Too Big to Fail

question 42

Multiple Choice

The idea of a bank being 'too big to fail' means:

• A) It has such a large asset base that its risk of failure is eliminated.
• B) Banks become more risk seeking because they believe they will be rescued if they fail.
• C) A lack of competition in financial markets which increases risk aversion.
• D) A reduced likelihood of adverse selection in financial markets.

Recognize the importance of pre-testing in research design.

Understand the concept of random sampling and its significance in research.

Identify the characteristics of effective survey questions.

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