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Demonstrated knowledge of the nature of a bank

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Reference no: EM131382566

The larger a bank the better is its ability to diversify. As a diversified portfolio of assets is a public good, regulators should not limit the size of banks, despite the significant negative externalities failures of large banks tend to impose on the public. Discuss. financial management

Assessment Criteria:

  • Demonstrated knowledge of the nature of a bank, financial risks and asymmetric information.
  • Logical inferences drawn from information presented and appropriate justification of stance taken.
  • Overall presentation of the argument is relevant and appropriate

Reference no: EM131382566

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