Depositors Have a Strong Incentive to Show Up First to Withdraw

question 33

Multiple Choice

Depositors have a strong incentive to show up first to withdraw their funds during a bank crisis because banks operate on a

• A)last-in,first-out constraint.
• B)sequential service constraint.
• C)double-coincidence of wants constraint.
• D)everyone-shares-equally constraint.

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Definitions:

Fever

A temporary increase in body temperature, often due to an illness, indicating an immune response to fight off infection.

2-Year-Old

A term describing a child who has reached the age of two, a stage often characterized by rapid growth, learning, and development.

Progressive Loss

A gradual decrease in function, quality, or quantity over time, often associated with health conditions or disease progression.

Presbycusis

Age-related hearing loss, gradually occurring as individuals get older, affecting the ability to hear higher frequencies first.