A "too big to fail" policy encourages small banks to take higher risks.

Name: A "too big to fail" policy encourages small banks to take higher risks.
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Question

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A "too big to fail" policy typically applies to large financial institutions, not small banks. It implies that the government will prevent large banks from failing due to their significant impact on the economy, which may encourage large banks to take higher risks, not small ones.

A "Too Big to Fail" Policy Encourages Small Banks to Take