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Baradar Baradar
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A year ago
Scenario: Alpha Bank has $100,000 in total assets and $45,000 in total liabilities. Beta Bank has $250,000 in total assets and $220,000 in total liabilities.


Refer to the scenario above. Which of the two banks is more prone to bank runs and why?

▸ Alpha Bank because it has less in total assets

▸ Alpha Bank because it is a smaller bank in general

▸ Beta Bank because it has more in total liabilities

▸ Beta Bank because its total liabilities are closer to its total assets so it has lower stockholders' equity
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
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melryandionmelryandion
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A year ago
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