Question

Which of the following actions could be used to resolve the too-big-to-fail problem? A. Encourage branch...

Which of the following actions could be used to resolve the too-big-to-fail problem?

A.

Encourage branch banking
B.

Repeal the Dodd-Frank regulations
C.

Require large banks to hold higher reserves
D.

Force large banks to merge
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The correct option is C, large banks should be required to hold higher reserves. It is important to learn that Dodd-Frank regulations were introduced to promote the financial stability of U.S by improving accountability and transparency in the financial system and to end "too big to fail". Therefore repealing this act will not resolve the problem, it will exacerbate it.

Dear Student/ Learner, it was my great pleasure to help you solving this problem. I wish you best luck for your learning endeavour.
Happy Learning

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Too Big to Fail", has become a phrase associated with the banking industry and even gave...
Too Big to Fail", has become a phrase associated with the banking industry and even gave rise to a film on the financial crisis of 2007-2009. Here are some questions you may discuss and comment on (See the links under Resources below for additional information): Do you think that with all the regulations in place now, including the Dodd-Frank Act of 2010, and the recent changes to the act, we can avoid another major financial bail-out? Can you identify the...
1. Which of the following actions would NOT tend to reduce the moral hazard problem in...
1. Which of the following actions would NOT tend to reduce the moral hazard problem in deposit insurance? a. Implementation of risk-based premium. b. Elimination of deposit insurance. c. Reduction of the insurance coverage. d. Introduction of voluntary membership. ___ 2. The Governor of the Federal Reserve System obtain their position through: a. appointment by the U.S. Senate b. appointment by the Chairman of the Board of Governors c. appointment by the U.S. president d. appointment by the directors of...
11. Which of the following could cause the US economy to go into a recession? A....
11. Which of the following could cause the US economy to go into a recession? A. None of the choices is correct B. All of the choices are correct C. a declining stock market and an increase in unemployment D. a decrease in Aggregate Demand E. an increase in pessimism by consumers and businesses 12. Which of the following could help pull the US economy out of a recession? A. All of the choices are correct B. declining stock market...
1. a. What is “TBTF?” - Too Big to Fail i. Does the “B” relate to...
1. a. What is “TBTF?” - Too Big to Fail i. Does the “B” relate to assets? Deposits? Net cost of a P&A to the FDIC? ii. Does the “F” mean revoking the charter? FDIC receivership? A bridge bank? iii. Discuss the potential ambiguities. b. How would higher capital requirements (CET1, Leverage, capital buffers, etc.) affect the incidence of TBTF actions? 2.         Closed Bank’s balance sheet: Assets ($mm) Liab. & Capital Good Assets 17,000 Insured Dep. 19,900 Questionable Assets...
1. Under the requirements of the Basel Accords, a bank that holds a higher share of...
1. Under the requirements of the Basel Accords, a bank that holds a higher share of its total assets as consumer loans relative to government securities will be required to hold capital compared to a bank that holds a lower share of consumer loans to government securities. A. more B. less C. the same 2.) Which of the following is a reason why the sub-prime mortgage market expanded significantly over the period 2001-2007? A. High investor demand for safer assets...
Multiple Choice 11. Prepayment risk is: A. the risk you will not receive the cash flows...
Multiple Choice 11. Prepayment risk is: A. the risk you will not receive the cash flows on a mortgage-backed security B. the risk that you will receive the cash flows sooner than expected and be forced to invest at a lower rate. C. the risk that you will receive the cash flows later than expected and not be able to invest at current, higher rates. 12. Based on the video Inside the Meltdown, it appeared that the main reason Lehman...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT