1-71 Why is the failure of a large bank more detrimental to the economy than the failure of a large steel manufacturer?

Question

Quizplus · Accepted Answer

The failure of a large bank is more detrimental to the economy than the failure of a large steel manufacturer because the bank's failure reduces credit availability throughout the economy. As a result, consumers and businesses may struggle to obtain loans and credit, slowing down economic activity. In contrast, the failure of a large steel manufacturer may only impact a particular industry or region, and the assets of the company (i.e., steel mills and equipment) are tangible and can be reallocated more easily than the intangible assets of a bank.

1-71 Why Is the Failure of a Large Bank More