The Diamond Dybvig Model Does Not

question 43

Multiple Choice

The Diamond Dybvig model does not

• A) provide an account of bank runs in the 19^th century United States.
• B) provide an account of bank runs in Canada.
• C) explain asset transformation.
• D) explain why a financial intermediary is diversified.
• E) show why a run can occur on an otherwise sound bank.

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