A Bank Failure Occurs Whenever

question 145

Multiple Choice

A bank failure occurs whenever

• A)a bank cannot satisfy its obligations to pay its depositors and other creditors.
• B)a bank suffers a large deposit outflow.
• C)a bank has to call in a large volume of loans.
• D)a bank refuses to make new loans.

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Definitions:

Concrete

A building material made from a mixture of broken stone or gravel, sand, cement, and water, which can be spread or poured into molds and forms a stone-like mass on hardening.

Abstract

Referring to concepts or ideas that are not concrete or tangible, but are instead thought of in a theoretical or conceptual way.

Chopsticks

Eating utensils consisting of a pair of long, thin pieces of wood or other material, commonly used in many East Asian countries.

Ought-Actual Discrepancy

The gap between how individuals believe they should be (ought self) and how they actually perceive themselves (actual self), potentially leading to stress or discomfort.