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The So-Called Too-Big-To-Fail Policy Has Two Conflicting Sides: on One

Question 199

Multiple Choice

The so-called too-big-to-fail policy has two conflicting sides: on one hand there's the moral hazard problem that it creates, but on the other hand, the Fed must


A) protect the stability of the banking system.
B) promote competition among banks.
C) ensure the employment of people in financial services.
D) control the money supply.

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