Question
Which of the following is false? A. During the financial crisis in fall 2008, many firms found their access to credit suddenly restricted. B. The
Which of the following is false?
A. | During the financial crisis in fall 2008, many firms found their access to credit suddenly restricted. | |
B. | The primary purpose of prudential bank regulation is to ensure the safety and soundness of the banking system. | |
C. | Forced or panic induced liquidations of banks and other financial firms are undesirable events that have spillover effects on other financial firms and financial markets. Economic recovery following a banking or financial crisis tends to be slow. | |
D. | Adam Smith (1776) stated that banks should be regulated due to their potential effect on the economy. | |
E. | Banks are typically financed with ample equity (capital), and very little debt, and thus banks are not very sensitive to losses. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started