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(a) Explain credit risk as it affects banks. (b) Discuss the main techniques that banks can use to manage credit risk (10 marks) (c) Explain

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(a) Explain credit risk as it affects banks. (b) Discuss the main techniques that banks can use to manage credit risk (10 marks) (c) Explain why banks are vulnerable to a 'run' and discuss how banks can protect themselves against a 'run' developing. (9 marks)

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