26. What is the “too big to fail” problem?
a) When large financial institutions are considered indispensable to the economy and are likely to be bailed out by the government during times of crisis
b) An issue pertaining to the excessive risks taken by small banks in pursuit of profit
c) A scenario where banks fail to meet regulatory capital requirements
d) The inability of banks to manage liquidity risk during financial crises
27. Which banking reform legislation focused on improving the stress resilience of financial institutions?
a) Basel III
b) Dodd-Frank Act
c) Glass-Steagall Act
d) Volcker Rule
28. What is stress resilience in the context of banking reform?
a) The ability of banks to withstand economic shocks
b) The capability of banks to generate profits consistently
c) The effectiveness of bank internal controls and processes
d) The transparency of banks’ financial reporting practices
29. Which major banking reform aimed to promote responsible risk-taking and prevent excessive risk accumulation?
a) Volcker Rule
b) Dodd-Frank Act
c) Basel III
d) Sarbanes-Oxley Act
30. Which banking reform encouraged financial institutions to hold higher capital buffers to absorb potential losses?
a) Basel III
b) Glass-Steagall Act
c) Dodd-Frank Act
d) Sarbanes-Oxley Act
