A Bank Failure Occurs Whenever

question 105

Multiple Choice

A bank failure occurs whenever

• A) a bank cannot satisfy its obligations to pay its depositors and have enough reserves to meet its reserve requirements.
• B) a bank suffers a large deposit outflow.
• C) a bank has to call in a large volume of loans.
• D) a bank is not allowed to borrow from the Fed.

---

Definitions:

Testing Principles

The essential guidelines and standards followed during the design and administration of tests to ensure validity, reliability, and fairness.

Ambiguous Stimuli

Inputs to our senses that can be perceived and interpreted in more than one way and do not have a single, clear interpretation.

Personality

A collection of qualities and traits that together form a distinctive individual identity.

Inventory

In psychology, a questionnaire or assessment tool used to measure and evaluate individual traits, behaviors, or attitudes.