Multiple Choice
The idea of a bank being 'too big to fail' means:
A) It has such a large asset base that its risk of failure is eliminated.
B) Banks become more risk seeking because they believe they will be rescued if they fail.
C) A lack of competition in financial markets which increases risk aversion.
D) A reduced likelihood of adverse selection in financial markets.
Correct Answer:
Verified
Correct Answer:
Verified
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