A Bank Run Occurs When ________

question 143

Multiple Choice

A bank run occurs when ________.

• A) a bank's assets exceed its liabilities
• B) a bank sells its assets to its own stockholders
• C) the central monetary authority regulates the functioning of banks
• D) a bank experiences an extraordinarily large volume of withdrawals

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Definitions:

Constitutional Source

The origin or basis of a legal principle found within a constitution.

Cooperative Federalism

An approach to federalism where national, local, and state governments work collaboratively and jointly to address mutual issues, instead of formulating policies independently.

Concurrent Powers

Powers that are shared by both the federal and state governments in the United States, allowing both to legislate on the same issues.

States' Rights

The rights and powers held by individual U.S. states rather than by the federal government, derived from the Tenth Amendment to the Constitution.