Ask Question
Social StudiesSocial Studies
28 November, 06:24

Why was it a problem for the bank to cash out stock?

+2
Answers (1)
  1. 28 November, 09:08
    0
    The bank loses its liquid funds if it decides to cash out stock.

    Explanation:

    The cashing out of a bank's stock means that if there be a case when the people who have invested int he bank long term decide to pull out their money, the Bank would not have it available in liquid form to give it to them.

    It is not advisable thus to use this method of giving away the liquid stock of the bank.

    This practice is harmful for the economy as the dilution of the assets means that the bank can go under debt and in turn will have high interest rates.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Why was it a problem for the bank to cash out stock? ...” in 📙 Social Studies if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which area within the discipline of anthropology is most similar to sociology?
Answers (1)
What agreement did great britain and the united states make in the 1820s concerning oregon
Answers (1)
At the Constitutional Convention of 1787, supporters of the Virginia plan and supporters of the New Jersey plan differed over the method for
Answers (1)
What caused cattle prices to fall in 1800? A. overexpanding herds B. overgrazing land C. droughts and blizzards D. low profits
Answers (1)
Which type of request will always go to the name server that is authoritative for the domain that contains the requested name or address to make completely sure data is obtained directly from the source?
Answers (1)
New Questions in Social Studies
How did the embargo act affect France and England?
Answers (1)
What caused the Triple Entente to form? Kaiser Wilhem's aggressive millitary build-up and his disregard for attempts at peace. England wanted to continue colonial expansion into Eastern Europe.
Answers (1)
When citizens circulate petitions to gather signatures to put a policy question on the ballot, it is called a (n) ?
Answers (1)
Which of the following is TRUE of stimulus generalization? (A) It is the process that occurs if two stimuli are sufficiently distinct from one another.
Answers (1)
A blimp provides aerial television views of a soccer game. The television camera sights the stadium at a 12degrees angle of depression. The altitude of the blimp is 400m.
Answers (1)
Home » Social Studies » Why was it a problem for the bank to cash out stock?
Sign Up Forgot Password?