Which of the Following About Bank Runs Is False

question 77

Multiple Choice

Which of the following about bank runs is false?

• A) They may start as a result of a rumor that a bank is in financial trouble.
• B) Many banks' depositors try to withdraw their funds because they fear a bank failure.
• C) Bank runs typically happen only to small banks with few financial assets.
• D) Bank runs often lead to a loss of faith in other banks, causing additional bank runs.

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Definitions:

Positive Or Negative Context

Describes the environment or backdrop that either supports a positive outcome, fostering growth and success, or contributes to negative results, leading to challenges and failures.

Design Thinking

Thinking that unlocks creativity in decision-making through a process of experiencing, ideation, and prototyping.

Visualizing And Brainstorming

A method used in planning and problem-solving that involves picturing a scenario or solution and generating creative ideas through collaborative discussion.

Representativeness Heuristic

A cognitive shortcut where individuals assess the likelihood of an event based on how closely it resembles their mental stereotypes or categories.