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1) The Fed allowed non-bank financial institutions to borrow money from the discount window during the mortgage crisis and even allowed non-banks to swap mortgages for Treasury securities. This was an attempt by the Fed to reduce ___________ at institutions.
Operational risk
Technological risk
Liquidity risk
Foreign exchange risk
Diversifiable risk

(2) (please see Excel spreadsheet to see values) What are Second National Bank's total sources of liquidity?
$6,520
$13,500
$14,200
$12,280
$5,760

 

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