The "too big to fail" policy exacerbates the moral hazard problem between

Name: The "too big to fail" policy exacerbates the moral hazard problem between
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Question

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The "too big to fail" policy exacerbates the moral hazard problem between regulators and banks because it implies that certain large financial institutions will receive government support if they are in danger of failing, encouraging riskier behavior since these banks expect to be bailed out.

The "Too Big to Fail" Policy Exacerbates the Moral Hazard