If the Government Did Not Offer the Too-Big-To-Fail Safety Net

question 23

Multiple Choice

If the government did not offer the too-big-to-fail safety net:

• A) large banks would be more disciplined by the potential loss of large corporate accounts.
• B) the moral hazard problem of insuring large banks would increase.
• C) the moral hazard problem of insuring large banks would not be affected.
• D) the FDIC deposit insurance limits would have to be raised.

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Definitions:

Chromosomes

Structures within cells that consist of DNA and protein, containing genes which are units of heredity and determine characteristics of an organism.

Protein Synthesis

The process in which cells build proteins based on instructions from genes.

Santiago Ramón y Cajal

A Spanish neuroscientist known for his pioneering work on the structure of the nervous system and the neuron doctrine.

Camillo Golgi

An Italian physician and scientist known for his pioneering work in neurobiology; he discovered the Golgi apparatus, a critical cellular organelle.