Depositors Lack of Information About the Quality of Bank Assets

question 27

Multiple Choice

Depositors lack of information about the quality of bank assets can lead to

• A)bank panics.
• B)bank booms.
• C)sequencing.
• D)asset transformation.

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Definitions:

Flight of Ideas

A thought disorder characterized by rapid shifts from one topic to another, often seen in manic states of bipolar disorder.

Loose Associations

A thought disorder characterized by a disorganized thinking process, evident when someone jumps from one idea to another with little logical connection.

Tangential

Diverging from the previous topic or path without reaching a definite goal or conclusion.

Poverty

A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.