The government policy that does not allow large banks to fail is known as

Name: The government policy that does not allow large banks to fail is known as
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Question

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The too-big-to-fail policy is a government policy that prevents large banks from failing, as their collapse could have severe consequences for the economy. This policy has been put in place to ensure that major financial institutions are bailed out even in times of economic crisis. Therefore, the correct answer is B.

The Government Policy That Does Not Allow Large Banks to Fail