The following behavior patterns of financial institutions tend to amplify shocks, except:

a) Market-making intermediaries target a level of VaR

b) Intermediaries sell risky assets when funding liquidity deteriorates

c) Banks issue long-term subordinated debt when credit risk spreads narrow

d) Lenders reduce the supply of credit when the value of collateral declines

Benefits from interconnectedness include

a) It can build resilience through diversification

b) It can increase allocative efficiency

c) It can transmit economic / financial shocks

d) None of the above

e) A and B