In a Bank Run in the Diamond-Dybvig Model, It Is

question 12

Multiple Choice

In a bank run in the Diamond-Dybvig model, it is in any depositor's interest to request withdrawal of his or her deposit because

• A) this avoids the possibility of consuming zero.
• B) this avoids the possibility of having one unit of consumption.
• C) government intervention assures that this is optimal behaviour.
• D) there are plenty of liquid assets to go around.
• E) the bank suspends withdrawal.

---

Definitions:

Tenant Act

Legislation designed to protect the rights of tenants by prescribing standards and procedures for the leasing and maintenance of rental properties.

Domestic Violence

Acts of violence or aggression by one family member against another within the domestic setting.

Life Estate

A property interest held during the lifetime of a specific individual, after which it passes to another designated party.

Grantor

A grantor is an individual or entity that transfers ownership of property.