Question
Which of the following describe a common cause of bank panics? Check all that apply. Bank executives are not trained in risk management. Bank regulators
Which of the following describe a common cause of bank panics?Check all that apply.
Bank executives are not trained in risk management.
Bank regulators are bureaucrats who do not keep up with real-world banking issues.
Potential buyers of the assets of a bank, incorrectly rumored to be distressed, may suspect the assets to be of poor quality.
Which of the following are reasons why bank panics were largely eliminated after 1933?Check all that apply.
Banks are required to hold a significant percentage of their assets as bank capital.
The Federal Reserve ("the Fed") stands ready to inject reserves into the system more quickly in a crisis.
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