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Do the banks have to buy them? Why do they buy them? Wouldn’t the bank have an advantage if it had liquidity when nobody else does?
by wincy 4y ago
Do the banks have to buy them? Why do they buy them? Wouldn’t the bank have an advantage if it had liquidity when nobody else does?
- redblacktree 4y agoThe banks buy them for the risk-free return.
- wincy 4y agoThat makes sense. If the US government defaults on their debt the bank has more important things to worry about.