Which of the following is not a reason why interbank lending dried up during the financial crisis of 2007-2009?
A) Banks preferred to hold on to their liquid assets in case their own need for them increased.
B) Banks grew increasingly concerned about the ability of their trading partners to repay the loans.
C) The increased cost of loans.
D) The Fed grew increasingly wary of making liquidity available to banks.
Correct Answer:
Verified
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