The "too big to fail" policy doctrine is premised on the separation of small depositors who would receive deposit insurance and large depositors who would not receive the benefits of deposit insurance.

Question

Quizplus · Accepted Answer

The "too big to fail" policy doctrine does not differentiate between small and large depositors. It refers to the idea that certain financial institutions are considered too big and interconnected to be allowed to fail due to their potential impact on the broader economy, and therefore may receive government support or bailouts.

The "Too Big to Fail" Policy Doctrine Is Premised on the Separation