Implicit Government Support for "Too-Big-To-Fail" Banks

Multiple Choice

Implicit government support for "too-big-to-fail" banks:

A) increases the scrutiny of the bank's risk by large corporate depositors.
B) reduces the risk faced by depositors with accounts less than $250,000.
C) reduces the risk faced by depositors with accounts exceeding $250,000.
D) reduces the moral hazard problem of insuring large banks.