Define how a bank can be forced into bank bankruptcy

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Question: Please cite sources properly and no plagiarism

1. Answer with a paragraph

Define how a bank can be forced into "Bank" bankruptcy, and then identify some of the actions that banks can take to reduce the chance of bankruptcy and some of the banking regulations that are designed to protect against this fate.

2. Answer with a paragraph

Explain, with a simple example how the banking system can create money, and then identify what factors can limit the amount of banking system money creation.

Chapter 14: Money and Banking

Reference no: EM132230518

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