Negative Externalities Exist in the Deposit-Taking Sector When

question 66

Multiple Choice

Negative externalities exist in the deposit-taking sector when

• A)the fear of DTI insolvency leads to bank deposit runs.
• B)lending activity is impaired or constrained.
• C)there are delays in disbursements from insolvent DTIs.
• D)banks that are healthy suffer when another bank nears insolvency.
• E)All of these.

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Definitions:

Demolition Derby

A motorsport event where participants deliberately crash their vehicles into one another until only one is left operational.

Title

Legal ownership or evidence of ownership of property, assets, or intellectual property.

License Plates

Metal or plastic plates displayed on vehicles to officially identify them and confirm they have been registered with the governing authorities.

Title

The legal right to own or possess something, such as property or a vehicle.