The policy which holds that the federal government should not allow large financial firms to fail,for fear of damaging the financial system,is known as the ________ policy.

Question

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The policy which holds that the federal government should not allow large financial firms to fail, for fear of damaging the financial system, is known as the "too-big-to-fail" policy. Dodd-Frank is a financial reform legislation passed in response to the 2008 financial crisis. Mandatory bailout and rational expectations are not applicable to this context.

The Policy Which Holds That the Federal Government Should Not