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The Practice of the ECB and National Central Banks of Preventing

Question 108

Multiple Choice

The practice of the ECB and national central banks of preventing massive bank failures after the financial crisis of 2008 had what effect on the affected economies?


A) Prevention of bank failures greatly reduced the pain of the crisis for taxpayers.
B) Prevention of bank failures ended up not saving most banks anyway.
C) Banks resisted the takeover by the ECB and refused to make additional credit available.
D) Governments financed the bailouts by issuing more domestic debt, which caused extreme fiscal problems.

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