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Question 18 Too big to fail creates problems in the financial world primarily because: O It requires government or FED intervention Creates a non-competitive market
Question 18 "Too big to fail" creates problems in the financial world primarily because: O It requires government or FED intervention Creates a non-competitive market Creates incentives for institutions to take excessive risk O Creates a public obligation to help failing institutions None of these answers Question 19 Banks fail when the value of bank reserves falls below the value of its required reserves, causing the bank to become insolvent. o when the value of bank loans falls below the value of its secondary reserves, causing the bank to become insolvent. o when the value of bank assets falls below the value of its liabilities, causing the bank to become insolvent. O when the value of deposits exceeds that value of a bank's loan portfolio. O none of these answers
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