Implicit Government Support for "Too-Big-To-Fail" Banks

question 117

Multiple Choice

Implicit government support for "too-big-to-fail" banks:

• A) increases the scrutiny of the bank's risk by large corporate depositors.
• B) reduces the risk faced by depositors with accounts less than $250,000.
• C) reduces the risk faced by depositors with accounts exceeding $250,000.
• D) reduces the moral hazard problem of insuring large banks.

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Definitions:

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