When the CDIC Takes Control of the Bank, Rather Than

question 13

Multiple Choice

When the CDIC takes control of the bank, rather than liquidate it, it believes that the takeover ________.

• A) was a good investment opportunity for the government
• B) could be part of a new governmentally owned banking system
• C) was too big to fail
• D) would become the center of the new central bank system

---

Definitions:

Extensive Form

Extensive form represents a way of describing a game in game theory, showcasing the sequential nature of players' decisions and possible strategies.

Perfect Information

A market condition where all participants have access to all necessary information to make informed decisions.

Stackelberg Duopoly

A market structure where two firms compete with one another with one firm establishing itself as a leader by setting its output or price first, and the other firm acting as a follower.