If the president of a bank told you that the bank wasso well run that it has never had to call in loans, sellsecurities, or borrow as a result of a deposit outflow,would you be willing to buy stock in that bank? Whyor why not?

If the president of a bank told you that the bank wasso well run that it has never had to call in loans, sellsecurities, or borrow as a result of a deposit outflow,would you be willing to buy stock in that bank? Whyor why not?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter14: The Financial Crisis And The Great Recessio

Section: Chapter Questions

Problem 1TY

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If the president of a bank told you that the bank was
so well run that it has never had to call in loans, sell
securities, or borrow as a result of a deposit outflow,
would you be willing to buy stock in that bank? Why
or why not?

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