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When Equity and Property Prices Collapse (Bust), Bank Balance Sheets

Question 14

Multiple Choice

When equity and property prices collapse (bust) , bank balance sheets are impaired because:


A) Banks hold a lot of corporate stocks
B) Banks own a lot of property outright
C) The collateral that is backing many of the loans banks have made is now worth less
D) Banks hold a lot of corporate stocks and they also own a lot of property outright

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