What Is Meant by the Commonly Used Phrase "Too Big

question 102

Multiple Choice

What is meant by the commonly used phrase "too big to fail"?

• A) Governments will likely be forced to bail out large banks if they fail due to systemic risk.
• B) Large banks typically have enough equity to avoid failure.
• C) Large banks typically have enough potential lenders to increase solvency if faced with a threat of failure.
• D) Large banks are more strictly regulated by the government and thus less likely to fail.

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Definitions:

Temperature

A measure of the average kinetic energy of the particles in a sample, influencing physical states, chemical reactions, and biological processes.

Atm

Short for "atmosphere," a unit of pressure or a reference to the gaseous envelope surrounding a celestial body.

Container

An object that can be used to hold or transport something, varying widely in size, shape, and materials depending on its purpose.

°C

Degrees Celsius (°C) is a unit of temperature measurement based on the Celsius scale, where water freezes at 0°C and boils at 100°C under standard atmospheric conditions.