Question: 1) Explain what the phrase privatizing the return and publicizing the risk means. Do you think the Too Big to Fail (TBTF) policy minimizes systemic

1) Explain what the phrase "privatizing the return and publicizing the risk" means. Do you think the Too Big to Fail (TBTF) policy minimizes systemic risk or exacerbates a moral hazard problem? Justify your ideas with specific reasons, facts, and examples from the topic Resourcesor outside research.

2) Do you believe financial innovation can lead to greater risks in financial stability? Explain using a specific example.

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