A Bank Is Termed 'Too Big to Fail' When

question 26

Multiple Choice

A bank is termed 'too big to fail' when

• A) it is of such economic importance that the government cannot allow it to fail
• B) it is so large and profitable that failure is very unlikely
• C) it is spread across so many countries, it cannot fail in any one country
• D) it has enough money to pay off all its debts
• E) all of the above

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Definitions:

Labor

The effort by workers to produce goods or services, typically measured in terms of hours worked or output produced.

Additional Unit

Refers to the next unit of a product or service to be produced or consumed, considered in analysis of costs and benefits.

Competitive Employer

An employer who maintains a strong position within the labor market by offering compelling wages, benefits, or working conditions to attract and retain employees.

Inputs

Resources used in the production of goods and services, including labor, capital, materials, and technology.