Why are some banks considered too big to fail? A. The Glass-Steagal Act prohibits the failure of any bank wiht more than $5 billion in assets B. Very large banks have enough assets to prevent financial distress and cannot fail C. These banks are so large that their failure may initiate a financial crisis in the broader economy D. Congress has always stepped in to bail out banks owned by politically connected individuals
Why are some banks considered too big to fail? A. The Glass-Steagal Act prohibits the failure of any bank wiht more than $5 billion in assets B. Very large banks have enough assets to prevent financial distress and cannot fail C. These banks are so large that their failure may initiate a financial crisis in the broader economy D. Congress has always stepped in to bail out banks owned by politically connected individuals
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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QUESTION 10
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Why are some banks considered too big to fail?
A. The Glass-Steagal Act prohibits the failure of any bank wiht more than $5 billion in assets
B. Very large banks have enough assets to prevent financial distress and cannot fail
C. These banks are so large that their failure may initiate a financial crisis in the broader economy
D. Congress has always stepped in to bail out banks owned by politically connected individuals
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