Explain the 3 circumstances that a bank can earn profits


Explain the 3 circumstances that a bank can earn profits from short selling securities. How to solve it? from market efficient hypothesis when the optimal forecast return less than equil. return?, or the broken of bubbles?, or the expected changes resulting in decreasing price (interest rate? demand? risk?)?

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Microeconomics: Explain the 3 circumstances that a bank can earn profits
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