Which of the following can put a bank under stress?
A)a widespread fall in asset prices
B)a significant currency drain
C)an increase in the number of customers using tellers
D)an increase in the number of customers applying for loans
E)Both A and B are correct.

Question

Quizplus · Accepted Answer

A widespread fall in asset prices can impact the value of a bank's holdings and investments, reducing its overall capital and liquidity. A significant currency drain can also limit a bank's ability to meet withdrawal requests and pay out obligations, putting it under stress. Increase in teller usage or loan applications may represent normal business activities and not necessarily put a bank under stress.

Which of the Following Can Put a Bank Under Stress