Was liquidity risk faced by banks in those years likely to

Reference no: EM13393843

Before 1933, there was no federal deposit insurance. Was the liquidity risk faced by banks during those years likely to have been larger or smaller than is today? Briefly explain.

Suppose that you are considering investing in a bank that is earning a higher ROE than most of the banks. You learn that the bank has $300 million in assets in bank capital and $5 billion in assets. Would you become an investor in this bank? Briefly explain.

Reference no: EM13393843

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