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What Is Meant by the Commonly Used Phrase "Too Big

Question 181

Multiple Choice

What is meant by the commonly used phrase "too big to fail"?


A) Governments will likely be forced to bail out large banks if they fail due to systemic risk.
B) Large banks typically have enough equity to avoid failure.
C) Large banks typically have enough potential lenders to increase solvency if faced with a threat of failure.
D) Large banks are more strictly regulated by the government and thus less likely to fail.

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