The Policy Which Holds That the Federal Government Should Not

question 39

Multiple Choice

The policy which holds that the federal government should not allow large financial firms to fail,for fear of damaging the financial system,is known as the ________ policy.

• A)Dodd-Frank
• B)mandatory bailout
• C)too-big-to-fail
• D)rational expectations

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Definitions:

Note

In financial contexts, a note is a legal document representing a loan or a promise to pay a specific sum of money at a future date.

Sells

Involves transferring ownership of a good or service to a buyer for a price.

HDC Status

An abbreviation for Holder in Due Course Status, it refers to a legal shield that provides protection for the possessor of a negotiable instrument from certain defenses if the instrument was acquired in good faith.

Irregularity

A deviation from what is standard, normal, or expected, often indicating a potential issue or problem.