All of the Following Are Associated with Contagious Runs EXCEPT

question 84

Multiple Choice

All of the following are associated with contagious runs EXCEPT

• A)liability holders not distinguishing between good and bad FIs.
• B)liability holders seeking to quickly turn their liabilities into cash or safe securities.
• C)a contractionary effect on the supply of credit.
• D)negative social welfare effects.
• E)an expansionary effect on the regional money supply.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold.

Gross Profit

The financial gain made after subtracting the cost of goods sold from revenue, indicating the efficiency of a company in managing its production and labor costs.

Fair Value Hedge

A hedge of the exposure to changes in fair value of a recognized asset or liability or an identified portion of such an asset or liability that is attributable to a particular risk.

Cash Flow Hedge

A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability, or a highly probable forecast transaction.