Government giveaways to banks make it more likely that financial institutions will:

Question

Quizplus · Accepted Answer

When banks are given government bailouts, they have less incentive to avoid taking excessive risk because they believe they will be rescued if they become insolvent. This can also lead to the creation of "too big to fail" institutions, which poses a risk to the entire financial system. Therefore, all of the answer choices are correct.

Government Giveaways to Banks Make It More Likely That Financial