The idea of a bank being 'too big to fail' means:
A) It has such a large asset base that its risk of failure is eliminated.
B) Banks become more risk seeking because they believe they will be rescued if they fail.
C) A lack of competition in financial markets which increases risk aversion.
D) A reduced likelihood of adverse selection in financial markets.
Correct Answer:
Verified
Q33: A sovereign debt crises is when:
A) Any
Q34: Sovereign deficits are financed by
A) Governments printing
Q35: The output gap refers to:
A) The difference
Q36: During a severe downturn in the economy,
Q37: The securitization of assets relies on:
A) Banks
Q39: A sign that the 2007-09 global economic
Q40: In the USA, the Federal Reserve Bank
Q41: Why did a rise in interest rates
Q42: Which of the following is NOT correct?
A)
Q86: What's the basis for arguing that deficits
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