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The Collapse of One Bank Might Lead Easily to the Failure

Question 79

Multiple Choice

The collapse of one bank might lead easily to the failure of several others,because ________.


A) depositors cannot trust each other to keep their money in the bank
B) deposit insurance renders all banks equally fragile
C) no bank can survive when its competitors cease to operate
D) government regulators will step in to punish any bank suspected of poor management

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