Question
1. Discuss what is traditional banking and how borrowing short and lending long makes a commercial bank susceptible to Bank Runs. 2. List 3 examples
1. Discuss what is traditional banking and how "borrowing short and lending long" makes a commercial bank susceptible to Bank Runs.
2. List 3 examples of Assets and 3 examples of Liabilities that commercial banks have on their balance sheets.
3. Briefly discuss 3 ways that banks can protect themselves or fight against "credit risk".
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Traditional Banking and Borrowing Short and Lending Long Traditional banking refers to the core activities of commercial banks which involve accepting deposits from customers and providing loans and c...
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
