If there were no defaults, there would be no reason for banks to have positive capital.
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Q15: Required reserves are liabilities of a bank.
Q16: Bank capital is the difference between the
Q17: Loans from the Fed are assets of
Q18: Banks use third party verification of application
Q19: Banks establish long-term commitments as a way
Q21: A typical bank has a positive gap.
Q22: A bank takes deposits and uses the
Q23: Gross spread is the sum of what
Q24: Which of the following balance sheet entries
Q25: Banks that borrow short and lend long
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