The reasons why private arrangements like the Commercial Bank Clearinghouses CBCH cannot eliminate banking panics is are
A) the degree of diversification is limited by the size of the group of member banks.
B) the CBCH does not have enough funds to bail out failed banks.
C) there is no reason to completely believe the integrity of the arrangements.
D) a and b only
E) a and c only
Correct Answer:
Verified
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