Why do we say that deposits are liabilities of banks

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1. Create your own numerical example to illustrate how leverage magnifies returns both on the upside and on the downside.

2. Why do we say that deposits are "liabilities" of banks?

3. During the financial crisis and recovery, stock market prices first fell by about 55 percent and then rose by about 65 percent. Did investors therefore come out ahead? Explain why not.

Reference no: EM131353698

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