In the Event of a Bank Run, Depositor Claims on the Bank

question 16

True/False

In the event of a bank run, depositor claims on the bank are satisfied on a pro rata basis.

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Definitions:

Framing Effects

The influence on an individual's decision made by the way information is presented, rather than just the information itself.

Wage Increase

An adjustment upward in the wage rate, resulting in employees receiving more compensation for their work.

Status Quo Bias

A cognitive bias that explains individuals' preference for current circumstances to remain unchanged or for decisions to be made that do not alter the current state.

Super-Size

A term often associated with fast food, indicating an option to upgrade a meal to a larger size with more of the product.