If People Speculate That a Run on One Bank Will

question 251

Multiple Choice

If people speculate that a run on one bank will cause a run on all banks in the financial system,and this speculation proves accurate,then the financial system would experience what is known as a

• A)commodity crisis.
• B)securitization meltdown.
• C)bank panic.
• D)institutional death spiral.

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Definitions:

Synapses

The junctions through which neurons communicate with other neurons, muscle cells, or gland cells.

Absolute Thresholds

The minimum stimulus energy needed to detect a particular stimulus 50% of the time.

General Tendency

A common or widespread inclination, pattern, or trend among people or phenomena.

Absolute Threshold

The minimum intensity of a stimulus that one can detect at least 50% of the time, which varies from one individual to another and for different senses.