ECONOMICS
MARKETS AND PRICES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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(1) and (2) only
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(1) and (3) only
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(2) and (3) only
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(1), (2) and (3)
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Detailed explanation-1: -A bank fails when it can’t meet its financial obligations to creditors and depositors. This could occur because the bank in question has become insolvent, or because it no longer has enough liquid assets to fulfill its payment obligations.
Detailed explanation-2: -Because most new banks start small, the lack of entry into commercial banking is a key driver of the decline in the number of smaller banks. Increased regulatory costs are one common explanation for the collapse of entry into commercial banking in the aftermath of the 2008 financial crisis.
Detailed explanation-3: -All banks are vulnerable to bank runs because banks only hold a small percentage of deposits, so if there is financial crisis, there is always the possibility of banks running out of capital when people are withdrawing their deposits.
Detailed explanation-4: -• Income Level Of The Households • Inflation • Interest On Saving Account • Education Level Of The Users • Interest On Loans • Substitutes Available. Income Level Of The Households. INFLATION. Interest On Savings Account. EDUCATION LEVEL. Interest On Loan. SUBTITUTES. More items