Today,bank Runs Are

question 110

Multiple Choice

Today,bank runs are

• A)uncommon because of the high reserve requirement.
• B)uncommon because of FDIC deposit insurance.
• C)common because of the low reserve requirement.
• D)common because the FDIC is nearly bankrupt.

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Definitions:

Interest Payment

The amount paid by a borrower to a lender as compensation for the use of borrowed money, usually expressed as a percentage of the principal amount.

Premium on Bonds Payable

The amount by which the bond's selling price exceeds its face value, representing an additional cost to the issuer.

Par Value

The face value of a bond or stock as stated in the corporate charter, not necessarily related to its market value.

Installment Note Payable

A debt or obligation that is paid back in regular installments over a specified period, including both principal and interest payments.