Recession Can Cause Widespread Bank Crises for All of the Following

question 38

Multiple Choice

Recession can cause widespread bank crises for all of the following reasons except:

• A) there is less business investment as banks make fewer loans.
• B) borrowers' default rates increase.
• C) bank capital increases.
• D) the negative effect on banks' balance sheets.

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Definitions:

Structure

The arrangement or organization of components within a system, or the framework that defines the relationship between different parts.

Attribution Theory

A theory that focuses on how individuals interpret events and how this relates to their thinking and behavior.

Implicit Personality Theory

The assumption that people make about how different types of personality traits are interconnected, influencing how they perceive others.

Impression Formation

The psychological process by which individuals form opinions or judgments about other people based on initial perceptions and subsequent interactions.