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Costs:
Too big to fail policy increases the risk taking habits of the bank. The bank which otherwise would have been very cautious on its risky activities as it is being scrutinized by the depositors would not worry that much as depositors have less incentive to monitor the banks risk taking activities.
It create undesired discrimination against the small banks as small banks does not benefit from the too-big-to-fail policy
Benefits:
The investors are assured that the bank will not fail and hence there is less panic to have a bank run kind of situation. This provides a degree of stability to the financial system.
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∙ 12y ago
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When both the costs and benefits of a policy are concentrated that policy are concentrated that policy will be will be debated through policy?
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When both costs and benefits of a policy are disrupted that policy will be debated through a procces of?
Interest group
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What political process is most likely to be used when both the costs and benefits of a policy concentrated?
The political process that is most likely to be used when both the costs and benefits of a policy are concentrated is interest-group politics.
When costs of a policy are broadly distributed and its benefits are concentrated that policy will be debated through a process of what politics?
client
When the costs of a policy are broadly distributed and its benefits are concentrated that policy will be debated through a process of process?
When the cost of a policy are broadly distributed, and its benefits are concentrated, that policy will be debated through a client process of politics. That's what will happen.
What political process is most likely to be used when the costs of a policy are broadly distributed and it and benefits are concentrated?
Entrepreneurial politics was the political process that is most likely to be used when the costs of a policy are broadly distributed and its benefits are concentrated.
When the costs of a policy are broadly distributed and its benefits are concentrated that policy will be debated a process of?
When the cost of a policy are broadly distributed, and its benefits are concentrated, that policy will be debated through a client process of politics. That's what will happen.
When both the costs and the benefits of a policy are concentrated that policy will be debated through a process of politics?
entrepreneurialCliententrepreneurialapex :)client or entrepreneurial
When both the costs and benefits of a policy are concentrated that policy will be debated through a process of politics.?
entrepreneurialCliententrepreneurialapex :)client or entrepreneurial
