A Bank Failure Is Less Likely to Occur When ________

question 94

Multiple Choice

A bank failure is less likely to occur when ________.

• A) a bank holds less government securities
• B) a bank suffers large deposit outflows
• C) a bank holds fewer excess reserves
• D) a bank has more bank capital

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Definitions:

Long-Term Obligation

A liability or debt expected to be paid or settled over a period longer than one fiscal year.

Operating Flexibility

The degree to which a company can adjust its operations and costs in response to changes in the business environment.

Manufacturing Facilities

Physical locations where products are produced or manufactured, including plants and factories.

U.S.GAAP

The set of accounting principles and standards used in the United States to govern the preparation of financial statements by publicly traded companies, focusing on transparency, consistency, and comparability.