Depositors Have a Strong Incentive to Show Up First to Withdraw

question 33

Multiple Choice

Depositors have a strong incentive to show up first to withdraw their funds during a bank crisis because banks operate on a

• A)last-in,first-out constraint.
• B)sequential service constraint.
• C)double-coincidence of wants constraint.
• D)everyone-shares-equally constraint.

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Definitions:

Physical Dependence

A physiological state of adaptation to a substance, where cessation of use results in withdrawal symptoms.

Central Nervous System Stimulants

Drugs that increase brain activity, leading to an increase in alertness, attention, and energy, commonly used to treat ADHD and narcolepsy.

Bulimia

An eating disorder marked by binge eating followed by methods to avoid weight gain, such as vomiting, fasting, or excessive exercise.

Amenorrhea

The absence of menstruation - one or more missed menstrual periods.