Banks Considered "Too Big to Fail" Were

question 36

Multiple Choice

Banks considered "too big to fail" were:

• A) bailed out through fiscal policy.
• B) bailed out through consumer spending.
• C) allowed to go bankrupt.
• D) helped by fiscal policy, but eventually went bankrupt.

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Definitions:

Callable Unsecured Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified call price and are not secured by collateral.

Subordinated Debentures

Bonds that have a lower priority than other debt obligations in case of liquidation, often carrying higher risk and yield.

Bonds

Fixed income investments where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at an interest rate.

Promissory Notes

Written promises to pay a specified sum of money to a certain entity on demand or at a defined future time.