Investment choices of banks


1. How have bank panics in the past influenced the investment choices of banks today? As the manager of the bank explain what instruments would you prefer and why?

2. What would you do or not do as the manager of the bank regarding day to day, short run or long run liquidity? Please give examples or be as detailed as you like.

3. If there is some trouble, would you want to be the first customer to withdraw his/her money market funds from the bank? Discuss your decision.

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Business Management: Investment choices of banks
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