What are the costs and benefits of a too-big-to-fail policy

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Financial Regulation

a) What bank regulations are designed to reduce moral hazard problems created by deposit insurance? Will they completely eliminate the moral hazard problem?

b) What are the costs and benefits of a too-big-to-fail policy?

c) If reserve requirements were eliminated in the future, as some economists advocate, what effects would this have on the size of money market mutual funds?

Reference no: EM13984019

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