The Too-Big-To-Fail Policy

question 81

Multiple Choice

The too-big-to-fail policy

• A)reduces moral hazard problems.
• B)puts large banks at a competitive disadvantage in attracting large deposits.
• C)treats large depositors of small banks inequitably when compared to depositors of large banks.
• D)allows small banks to take on more risk than large banks.

---

Definitions:

Parties

Social gatherings where individuals come together to celebrate, socialize, or engage in various activities.

Flying

The act of moving through the air, typically by using wings or propulsion, applicable both to animals and machines like airplanes.

Observational Learning

A learning process through observing the behavior of others and the outcomes of those behaviors.

Phobic Behaviors

Actions or reactions that are excessively fearful or anxious about specific objects, situations, or activities, leading to avoidance behavior.