Bank Panics

question 128

Multiple Choice

Bank panics

• A) occur frequently in fractional reserve banking systems.
• B) are a risk of fractional reserve banking but are unlikely when banks are highly regulated and lend prudently.
• C) cannot occur in a fractional reserve banking system.
• D) occur more frequently when the monetary system is backed by gold.

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Definitions:

Developing Countries

Nations with a lower living standard, undeveloped industrial base, and low Human Development Index (HDI) relative to other countries.

Skilled Workers

Individuals who have specialized training or expertise in a particular job or industry, often requiring formal education or apprenticeship.

Foreign Aid

Financial or in-kind assistance given by one country to another, often for developmental projects, humanitarian aid, or economic stabilization.

World Bank

A global financial intermediary that provides financial assistance and grants to the governments of developing nations with the aim of pursuing capital project investments.