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QUESTION 1 A crash in the repo market led to substantial liquidity risks for Fls. True False QUESTION 2 The five C's of credit (character,
QUESTION 1 A crash in the repo market led to substantial liquidity risks for Fls. True False QUESTION 2 The five C's of credit (character, capacity, collateral, conditions, and capital) is a way in which Fl's evaluate loan applications. Applying it appropriately will reduce a bank's credit risk. True False QUESTION 3 The financial crisis of 2007-08 is considered an illiquidity event. Instead of a run on a Fl's deposits, it was a run on a Fl's short-term debt - namely in the form of repos. True False
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