Banks N Dhat Flashcards
(1 cards)
1
Q
Why do banks fail
A
when they borrow short term and lend long term
Deposits can be taken out instantly and if all same time - run on the bank
Trading with insufficient capital and liquidity
Why do banks fail
when they borrow short term and lend long term
Deposits can be taken out instantly and if all same time - run on the bank
Trading with insufficient capital and liquidity
macroEcon question answers (32 decks)