Which of the following is a consequence of the too-big-to-fail policy? A. The market becomes more concentrated as large bank becomes larger. B. The adverse selection problem worsens. C. Large banks are bought by the government. D. More small banks are formed to compete against "the establishment".

Which of the following is a consequence of the too-big-to-fail policy? A. The market becomes more concentrated as large bank becomes larger. B. The adverse selection problem worsens. C. Large banks are bought by the government. D. More small banks are formed to compete against "the establishment".

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Monetary System

Section: Chapter Questions

Problem 5PA

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Question

Which of the following is a consequence of
the too-big-to-fail policy?
A. The market becomes more concentrated
as large bank becomes larger.
B. The adverse selection problem worsens.
C. Large banks are bought by the
government.
D. More small banks are formed to compete
against “the establishment".

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