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May 22, 2024

. What do banks do? Please explain the roles undertaken by banks.

1. What do banks do? Please explain the roles undertaken by banks.

2. Please explain “bank runs.”

3. Please explain the significance of “equilibrium” in the market.

4. Regarding market failures: (1) Please explain what market failures may occur in credit market. (2) Please provide an example where problems arise (or may arise) due to information asymmetry, rendering the price mechanism ineffective in your daily life.

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