In Standard Circumstances a Firm __________ When Its __________

question 55

Multiple Choice

In standard circumstances a firm __________ when its __________.In financial markets this approach didn't work following the ____.

• A)files for bankruptcy;liabilities exceed its assets;collapse of Lehman Brothers
• B)sells its assets at fire sale prices;profits are negative;AIG debacle
• C)increases its risky holdings;revenues fall;volatility of exchange rates in Japan
• D)borrows liquidity from the Fed;its leverage ratio rises above 75;passage of the TARP legislation
• E)outsources its labor;net revenues are negative;purchase of Merrill Lynch by the Bank of America

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Definitions:

DSM-5

The Fifth Edition of the Diagnostic and Statistical Manual of Mental Disorders is a detailed classification system for mental disorders, released by the American Psychiatric Association.

Anorexia Nervosa

An eating disorder characterized by an obsessive fear of gaining weight and a refusal to maintain a healthy body weight.

Bulimia Nervosa

An eating disorder marked by cycles of overeating (binging) followed by purging via vomiting, laxatives, fasting, or excessive exercise.

Laxatives

Substances taken to stimulate or facilitate bowel movements.