Which of the Following Is NOT Likely to Occur When

question 3

Multiple Choice

Which of the following is NOT likely to occur when a bank fails?

• A)Everyone that deposits money in the bank loses all or a portion of their money, unless the country has a functioning deposit insurance system.
• B)The loss of savings (or the feared loss of savings)causes households to cut back on consumption, which spreads the recessionary effect wider through the country.
• C)Unaffected banks may stop making loans as they take a cautious approach, slowing or stopping new investment.
• D)Other banks make too many loans to make up for the loans not made by the failed bank, kicking off a cycle of stimulation and inflation.

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Definitions:

Intellectual Property

Legal rights that come from the creation of the mind, such as inventions, literary and artistic works, designs, and symbols.

Company Product

The goods or services offered by a company to its customers.

Glue

A substance used to bond materials together by surface attachment.

Family and Medical Leave

Legislation that allows employees to take unpaid, job-protected leave for certain family and medical reasons with continuation of group health insurance coverage.