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Bank solvency crises can be caused by all but which of the following reasons? a. A bank may not be able to fund off-balance sheet
Bank solvency crises can be caused by all but which of the following reasons?
a. A bank may not be able to fund off-balance sheet loan commitments when they are exercised by the debtor.
b. Depositors may elect to withdraw funds from the bank all at once.
c. A bank suffers many unexpected loan failures at the same time.
d. Banks exercise CDSs to receive principal payment on defaulted bonds.
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