Question: 25
(Choose 1 answer)
What is "too big to fail" policy?
A. It is a government's policy to protect big banks when they get into trouble because their failures may set off
a chain reaction that throws the entire financial system into crisis.
B. It is a government's policy to prevent small and medium sized banks from becoming too big to get into
trouble.
C. It is a government's policy to make banks become more interconnected so that their creditors can be fully
protected.
D. It is a government's policy to avoid a vicious circle of moral hazard to stabilize the financial system.
