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:

Haptics

The study and use of touch as a means of communication, including gestures, body language, and the texture of materials.

Nonverbal Messages

Communication conveyed through means other than words, such as gestures, facial expressions, and body language.

Immediacy Behaviors

Nonverbal actions that communicate closeness, availability, and attention to others.

Nonverbal Status Symbols

Indicators of socio-economic position or professional status communicated without the use of words, such as clothing, accessories, or cars.