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The Too-Big-To-Fail Policy Is a Policy Under Which Bank Regulators

Question 32

Multiple Choice

The too-big-to-fail policy is a policy under which bank regulators will not close a bank that is deemed to


A) have enough reserves to meet the cash requirements of its customers.
B) have a history of low default risk on debt issue.
C) be so large that its closure would affect the financial system and cause other banks to fail.
D) be larger than the Federal Reserve System.

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