Bank Failures Tend to Occur Most Often During Periods Of

question 122

Multiple Choice

Bank failures tend to occur most often during periods of:

• A)Stock market run ups when, like many companies, banks tend to be overvalued
• B)High inflation when the fixed rate loans of many banks cause their real returns to decrease
• C)Recessions when many borrowers have a difficult time repaying loans and lending activity slows
• D)Wars and other civil unrest

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