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Nonetheless, extreme regulation has also been cited like a probable bring about of financial crises. Especially, the Basel II Accord has long been criticized for requiring banking companies to extend their funds when challenges increase, which could cause them to lower lending exactly when money is scarce, likely aggravating a money crisis.[twenty five]
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Thought of Demand from customers and provide: We know that a demand offers increase into the output and modifications to the speed of provide. The higher the need, the higher is the availability and higher are the costs.
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