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Question
Which of the following is an error made by commercial banks in 1920s that caused depositors to lose money andforced regulators to impose restrictions?
a. Banks sold securities in the primary market.
b. Smaller banks merged to form larger banks.
c. Banks issued loans to a number of firms that went bankrupt during the Great depression.
d. Banks did not diversify their activities and were engaged only in banking activities.
Answer
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