Former Federal Reserve Chairman Ben Bernanke has observed: Even a bank that is solvent under normal conditions
Question:
Former Federal Reserve Chairman Ben Bernanke has observed: “Even a bank that is solvent under normal conditions can rarely survive a sustained run.”
a. What does Bernanke mean by “solvent under normal conditions”?
b. What does he mean by a “sustained run”? Why can’t a bank survive a sustained run?
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a By solvent under normal conditions former Fed Chair Bernanke means that the net worth assets ...View the full answer
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Related Book For 
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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