One of the lessons from the 2007-2009 financial crisis regarding the management of risk by financial institution is that:
A. many of the usual mechanisms for managing liquidity risk actually worked pretty well.
B. many banks lacked real-time information that would allow them to assess their various risk exposures at the bank-wide level.
C. some banks, especially large ones, overestimated the trading risk associated with mortgage backed securities.
D. banks were holding too much capital as a protection against market risk.
Answer: B
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