The Most Effective Mechanism for Reducing Runs on Banks Is

question 26

Multiple Choice

The most effective mechanism for reducing runs on banks is _____.

• A)the discount rate
• B)deposit insurance
• C)the reserve requirement
• D)open-market operations
• E)the Federal Reserve note

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Definitions:

Construct Validity

The extent to which a test measures what it claims to measure, reflecting the accuracy of operationalizing a concept or construct.

Gifted Range

A classification in educational psychology referring to individuals, especially children, who demonstrate outstanding aptitude or competence in one or more domains.

Lifespan

The maximum or typical duration of life of an organism, or the period during which a living thing exists, from birth to death.

Stereotype Vulnerability

A condition in which an individual's performance or behavior is influenced by awareness that their group is associated with a negative stereotype.