In Standard Circumstances a Firm ________ When Its ________

Multiple Choice

In standard circumstances a firm ________ when its ________. In financial markets this approach did not work following the ________.

A) files for bankruptcy; liabilities exceed its assets; collapse of Lehman Brothers
B) sells its assets at fire sale prices; profits are negative; AIG debacle
C) increases its risky holdings; revenues fall; volatility of exchange rates in Japan
D) borrows liquidity from the Fed; leverage ratio rises above 75; passage of the TARP legislation
E) outsources its labor; net revenues are negative; purchase of Merrill Lynch by the Bank of America