Negative Externalities Exist in the Depository Sector When

question 91

Multiple Choice

Negative externalities exist in the depository sector when

• A)the fear of DI insolvency leads to bank deposit runs.
• B)lending activity is impaired or constrained.
• C)there are delays in disbursements from insolvent DIs.
• D)banks that are healthy suffer when another bank nears insolvency.
• E)All of the options.

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Definitions:

Liable

Liable refers to being legally responsible to someone else for damages or losses.

Article 6

Article 6 is a broadly used term that can reference a specific provision within a document; without additional context, its specific interpretation can vary widely.

Uniform Commercial Code

An extensive collection of statutes that regulate business dealings in the United States, designed to unify legal requirements throughout the states.

Bulk Sales

Transactions where a business sells a significant portion of its inventory to a single buyer as part of liquidating the business or changing its product line.