Why is the failure of a large bank more detrimental to the economy than the failure of a large steel manufacturer The bank failure usually leads to a government bailout. There are fewer steel manufacturers than there are banks. The large bank failure reduces credit availability throughout the economy. Since the steel company's assets are tangible, they are more easily reallocated than assets. the intangible bank QUESTION 2 Depository institutions (Dis) play an important role in affecting the monetary policy of the economy primarily because loans to corporations are part of the money supply. bank loans are highly regulated. savings institutions provide a large amount of credit to finance residential real estate Di deposits are a major portion of the money supply