What regulations affect the likelihood of given outcomes

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Consider two possibilities:

(i) a bank is forced to close even though there is no good reason for it to close;

(ii) a bank remains open even though there are good reasons for it to close.

a. Explain why (i) and (ii) are possible and what regulations affect the likelihood of these outcomes.

b. Can some combination of regulations make both (i) and (ii) unlikely?

Reference no: EM131221539

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