A Problem with the Too-Big-To-Fail Policy Is That It ________

question 15

Multiple Choice

A problem with the too-big-to-fail policy is that it ________ the incentives for ________ by big banks.

• A)increases;moral hazard
• B)decreases;moral hazard
• C)decreases;adverse selection
• D)increases;adverse selection

---

Definitions:

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Conventional Relationships

Traditional connections or associations between ideas, things, or people based on societal norms.

Bases for Division

The criteria or principles used to divide or classify information, objects, or individuals into distinct groups or categories.

Simple Present Tense

Simple present tense is a verb tense used to describe habits, universal truths, routines, and facts that are currently true or occur on a regular basis.