Banks specialize to help decrease the problems of adverse selection.
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Q5: Employees of a bank in liquidity management
Q6: The gap is the difference between interest-rate-sensitive
Q7: Banks should strive to raise their level
Q8: To ensure solvency in case of defaults,
Q9: Employees in asset management would decide what
Q11: The fraction of excess reserves is a
Q12: Banks use third party verification of application
Q13: If a bank is not meeting the
Q14: Interest rate risk is the chance that
Q15: Required reserves are liabilities of a bank.
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