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How can investment banks be subject to liquidity problems? Investment banks can be subject to liquidity problems because A . they often borrow long term,
How can investment banks be subject to liquidity problems?
Investment banks can be subject to liquidity problems because
A they often borrow long term, sometimes as long as thirty years, and invest the funds in shorterterm investments.
B they are highly regulated and are taxed very heavily.
C they borrow from households and firms in the form of checking and savings deposits.
D they often borrow short term, sometimes as short as overnight, and invest the funds in longerterm investments.
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