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Money & Banking - Coggle Diagram

- - - - Sequential service constraint
        
        first come first serve
  - - - Deposit insurance
      - Central Bank funding
- - - - if banks increase the prices, i.e. increase interest rate the result will be (1) bank receive higher interest payment but (2) will lose out on borrower who are not willing pay the higher interest rate -> credit rationing
- - - - risk for lenders
- - - - strong connection between securitization and financial crises