1.Give two reasons why a banking crisis is likely to result in a recession in the...

1.Give two reasons why a banking crisis is likely to result in a recession in the “real economy”.

2.(a)Suppose you have $400,000 in a deposit account at a Canadian bank that has just been declared insolvent. Would you prefer that the Canadian Deposit Insurance Corporation (CDIC) resolve the solvency under the “winding up method” or the “purchase and assumption” method? Explain your choice.

(b) Suppose instead you are a shareholder in the now insolvent bank. Answer the question from part (a) in this case

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Rahul Sunny answered 1 year ago

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