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1.Continental Bank of Illinois was bailed out before a banking crisis occurred. Regulators thought that Continental was too big to fail. true or false ? why ?

2. Paul Volcker argued that the failure of Continental Illinois Bank would have caused other banks to face runs. true or false? why ?

3. Gorton argues that it is not more capital that is needed to prevent bank failures but more cash and liquidity. true or false? why ?

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