When a Financial Institution Is Deemed Too Systematically Important to Go

question 73

Multiple Choice

When a financial institution is deemed too systematically important to go under, it is ________. This leads to ________.

• A) a monopoly; above-marginal cost pricing
• B) too big to fail; moral hazard
• C) an "umbrella" bank; less competition
• D) a bank-holding company; adverse selection
• E) an investment bank; nationalization

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Definitions:

Split-Half Technique

A way to determine inter-item reliability by correlating half the questions in a question set with the other half of the questions.

Tested

Evaluated or examined the performance, quality, or reliability of something through trial or experiment.

Compared Results

Involves the process of evaluating and contrasting the outcomes of different tests, studies, or data sets to identify patterns, differences, or correlations.

Likert-Format

Describes the specific layout or presentation of Likert scales, used to capture respondents' attitudes by offering a range of answer options.