The Dodd-Frank Act of 2010 ________.
A) prevents the US government from taking over small financial institutions and rescue them from a potential bankruptcy
B) allows the US government from taking over small financial institutions and rescue them from a potential bankruptcy
C) prevents the US government from taking over large financial institutions and rescue them from a potential bankruptcy
D) allows the US government from taking over large financial institutions and rescue them from a potential bankruptcy

Question

Quizplus · Accepted Answer

The Dodd-Frank Act of 2010 allows the US government to take over and dismantle large financial institutions that are failing, to prevent their collapse from damaging the broader financial system and economy. This process is aimed at avoiding a repeat of the 2008 financial crisis, where the government had to bail out large institutions to prevent systemic failure.