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ya-yaa ya-yaa
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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. If Beta Bank is faced with a bank run, what must it do?

▸ Not pay out the deposits that are being withdrawn

▸ Invest more of its short-term assets in long-term assets to protect them

▸ Rely on the FDIC to pay out the withdrawn deposits

▸ Liquidate its long-term, illiquid assets
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Macroeconomics

Macroeconomics


Edition: 3rd
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paris.chenparis.chen
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
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