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banks typically come under financial stress because of a. the money multiplier effect b. a widespread decline in the value of their assets c. diversification of loan assets d. higher interest rates

Sagot :

Banks typically come under financial stress because of a widespread decline in the value of their assets.

Finance is the examination and area of money, forex and capital belongings. it's miles associated with, but no longer synonymous with economics, the observe of production, distribution, and intake of money, belongings, goods and services (the field of monetary economics bridges the two). Finance sports take vicinity in monetary systems at numerous scopes, as a consequence the sphere may be roughly divided into non-public, corporate, and public finance.  In a monetary system, assets are sold, sold, or traded as monetary gadgets, which includes currencies, loans, bonds, stocks, shares, alternatives, futures, and so on.

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