Question: Provide in each case a brief explanation articulating why the statement may be true or false. State true or false and then explanation of it

  • Provide in each case a brief explanation articulating why the statement may be true or false.
  • State true or false and then explanation of it why

Russian banks are facing a liquidity crisis as Russians are queuing to withdraw their deposits. Rather than imposing severe limits on daily withdrawals, the central bank of Russia should have pumped lots of liquidity into the system by buying large amounts of government securities from banks in exchange for cash or lending banks money by printing more currency. This would have been good for banks, depositors and the economy. True or False? (Word limit 300)

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