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

question 43

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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