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Capital can help prevent banks from bankruptcy.Explain why things can still go wrong even if a banks holds some capital.
Economic Risk
The possibility of loss caused by macroeconomic or market conditions, such as changes in interest rates or recessions.
Forward Rate
The agreed upon exchange rate for a currency transaction that will occur at a future date.
Spot Price
The current market price at which an asset can be bought or sold for immediate delivery.
Canadian Dollars
The currency of Canada, symbolized as CAD, and used throughout the country.
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