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1. What is the difference between a bank that is insolvent and one that is illiquid? 2. What is the link between the safety net

1. What is the difference between a bank that is insolvent and one that is illiquid?

2. What is the link between the safety net provided by the government to the financial industry and the relatively heavy regulation of the same industry by the government?

3. Define the components of the CAMELS criteria. Explain how a CAMELS rating is calculated.

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