bank failure Flashcards
1
Q
why do banks fail
A
-bank run: not enough liquid short term assets to meet short term liabilities
-insolvency: not enough capital to offset losses in asset value
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macroeconomics > bank failure > Flashcards
why do banks fail
-bank run: not enough liquid short term assets to meet short term liabilities
-insolvency: not enough capital to offset losses in asset value
