Which of the following could lead to a bank's failure,even if the bank has positive net worth?
A) The bank may encounter difficulty selling its government bonds.
B) Most of the bank's liabilities are illiquid.
C) A bank with positive net worth cannot fail.
D) The bank may encounter difficulty borrowing reserves from the Federal Reserve.
E) Most of the bank's assets are illiquid.
Correct Answer:
Verified
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