Question on: JAMB Economics - 1995
A bank is said to be distressed when it?
A
is unable to deal with the Central Bank
B
has a low level of capital base
C
has low level of deposits
D
experiences serious liquidity crisis
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Correct Option: D
A bank is said to be distressed when it experiences a serious liquidity crisis. This means the bank is unable to meet its financial obligations as they become due, such as withdrawals by depositors. This can lead to the bank's failure.
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