On November 20, 1985, the Bank of New York Needed

question 37

Multiple Choice

On November 20, 1985, the Bank of New York needed to use the lender of last resort function due to:

• A) a run on the bank started by a rumor that the president of the bank embezzled tens of millions of dollars from the bank.
• B) a computer error caused the bank's records to wipe out the balances of all of its customers.
• C) a rumor that the bank was about to be taken over by FDIC due to insolvency.
• D) a computer error that made it impossible for the bank to keep track of its Treasury bond trades.

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Definitions:

Memory Functions

The processes involved in encoding, storing, and retrieving information in the brain, crucial for learning and adaptation.

Fluid Intelligence

The capability to solve novel problems, reason abstractly, and adapt to new situations without relying on existing knowledge.

Retrospective Memory

Memory of past events and general knowledge.

Chronic Alcoholism

Chronic alcoholism is a long-term, progressive disease characterized by an uncontrollable urge to consume alcohol despite adverse consequences to health, relationships, and social standing.