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During Times of Financial Crisis,mark-To-Market Accounting

Question 49

Multiple Choice

During times of financial crisis,mark-to-market accounting


A) requires that a financial firms' assets be marked down in value which can worsen the lending crisis.
B) leads to an increase in the financial firms' balance sheets since they can now get assets at bargain prices.
C) leads to an increase in financial firms' lending.
D) results in financial firms' assets increasing in value.

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