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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