Bank Runs Are "Contagious" in That They Often Spread to Other

question 191

True/False

Bank runs are "contagious" in that they often spread to other banks.

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Definitions:

Return on Total Assets

A financial ratio that measures a company's profitability in relation to its total assets, indicating how efficiently assets are used to generate profit.

Net Income

The total profit of a business after all expenses, taxes, and costs have been subtracted from total revenues.

Asset Turnover

A measure of how effectively a business is using its assets to generate sales.

Return on Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, demonstrating the profitability of a company from the perspectives of its equity investors.