Why Is the Failure of a Large Bank More Detrimental

Multiple Choice

Why is the failure of a large bank more detrimental to the economy than the failure of a large steel manufacturer?

A) The bank failure usually leads to a government bailout.
B) There are fewer steel manufacturers than there are banks.
C) The large bank failure reduces credit availability throughout the economy.
D) Since the steel company's assets are tangible, they are more easily reallocated than the intangible bank assets.
E) Everyone needs money, but not everyone needs steel.