Banks which are deemed too big to fail leads to adverse selection.

Name: Banks which are deemed too big to fail leads to adverse selection.
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Question

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Adverse selection refers to a situation where one party in a transaction has more information than the other, often leading to a negative outcome. "Too big to fail" banks relate more to moral hazard, where banks take on excessive risks knowing they will be bailed out.

Banks Which Are Deemed Too Big to Fail Leads to Adverse