In a Bank Run in the Diamond-Dybvig Model, It Is

question 3

Multiple Choice

In a bank run in the Diamond-Dybvig model, it is in any depositor's interest to request withdrawal of his or her deposit because

• A)government intervention assures that this is optimal behaviour.
• B)the bank suspends withdrawal.
• C)this avoids the possibility of consuming zero.
• D)this avoids the possibility of having one unit of consumption.
• E)there are plenty of liquid assets to go around.

---

Definitions:

Self-presentation Strategies

Techniques used by individuals to control the impressions others form of them during social interactions.

Ingratiation

Behaving in ways to make oneself likable to others.

Exemplification

Providing examples or instances to illustrate or clarify a concept, theory, or principle.

Self-promotion

The act of highlighting one's own skills, achievements, or qualities, often to advance personal or professional goals.