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Discuss the Problem of Systemically Risky Banks

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Essay

Discuss the problem of systemically risky banks. What is a systemically risky bank and what is the government doing to limit the risk from these institutions? Is it likely to work and prevent another financial crisis?


Definitions:

Chi-square Test

A nonparametric statistical test used to determine if there is a significant association between two categorical variables.

Mutually Exclusive

A statistical term describing two events that cannot occur at the same time, implying no overlap between the events.

Null Hypothesis

A statement of equality between sets of variables. See Research Hypothesis.

Percentage

A portion of 100 that expresses a part of a whole, commonly used in comparing quantities.

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