Which of the Following Are Reasons That Banks Are So

question 31

Multiple Choice

Which of the following are reasons that banks are so heavily regulated?

• A)Governments are concerned about the safety of deposits.
• B)The industry is a principal determinant of aggregate demand.
• C)Bank failures are contagious.
• D)All of the above are correct.

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Definitions:

Engineering Problem

A challenge or issue within the field of engineering that requires a solution, often involving mathematical, scientific, and practical knowledge.

Belief Perseverance

Clinging to one’s initial conceptions after the basis on which they were formed has been discredited.

Intuition

An effortless, immediate, automatic feeling or thought, as contrasted with explicit, conscious reasoning.

Gut-Level

A colloquial term describing a reaction or feeling that is instinctual or based on deep-seated intuition rather than rational analysis.