In standard circumstances a firm __________ when its __________.In financial markets this approach didn't work following the ____.
A)files for bankruptcy;liabilities exceed its assets;collapse of Lehman Brothers
B)sells its assets at fire sale prices;profits are negative;AIG debacle
C)increases its risky holdings;revenues fall;volatility of exchange rates in Japan
D)borrows liquidity from the Fed;its leverage ratio rises above 75;passage of the TARP legislation
E)outsources its labor;net revenues are negative;purchase of Merrill Lynch by the Bank of America

Question

Quizplus · Accepted Answer

In standard circumstances, a firm would file for bankruptcy when its liabilities exceed its assets. The collapse of Lehman Brothers was a pivotal moment in financial markets, as it showed that this approach could not always be relied upon.

In Standard Circumstances a Firm __________ When Its __________

In Standard Circumstances a Firm When Its