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    Exam 10: Economic Analysis of Financial Regulation
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    Because of Asymmetric Information,the Failure of One Bank Can Lead
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Because of Asymmetric Information,the Failure of One Bank Can Lead

Question 78

Question 78

Multiple Choice

Because of asymmetric information,the failure of one bank can lead to runs on other banks. This is the


A) too-big-to-fail effect.
B) moral hazard problem.
C) adverse selection problem.
D) contagion effect.

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