As the Fed responded to the financial crisis that followed the collapse of the housing market, certain banks were deemed too:
A. large to fail, and were consequently purchased by the government.
B. small to fail, as they were easy to save.
C. large to stay afloat, as they would be too costly to save.
D. large to fail, as their failure would carry the risk of causing a domino effect in the highly integrated financial system.
Answer: D
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If a technological advance makes it possible to produce computers at a lower cost
A) the demand for computers decreases. B) the demand for computers increases. C) the supply of computers increases. D) the supply of computers decreases.
What is the relationship between marginal cost and marginal revenue when a single-price monopoly maximizes profit?
What will be an ideal response?
An increase in demand will increase total revenue: a. Always
b. Only if supply is relatively inelastic. c. Only if supply is relatively elastic. d. Only if supply is unit elastic.
Equilibrium occurs when the aggregate demand curve intersects the aggregate supply curve.
Answer the following statement true (T) or false (F)