A well-capitalized financial institution has ________ to lose if it fails and thus is ________ likely to pursue risky activities.

Question

Quizplus · Accepted Answer

A well-capitalized financial institution has more to lose if it fails, as it has a significant amount of its own money at stake. This higher stake in its own survival makes it less likely to pursue risky activities that could jeopardize its financial stability.

A Well-Capitalized Financial Institution Has ________ to Lose If It