What happened to the Icelandic banks in October 2008?
Answer and explanation
Correct answer: A. The three largest banks collapsed and were taken over by the state
- Step 1: The banks had grown very large compared with the economy and relied on foreign funding. Step 2. When funding dried up, Glitnir, Landsbanki and Kaupþing failed. Answer: The three largest banks collapsed and were taken over by the state. Why not the others: They did not merge or move, and the Nordic Council does not buy banks.
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More Settlement to the Modern Republic questions
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