The Risk That Many Depositors Withdraw Their Funds from an FI

question 114

Multiple Choice

The risk that many depositors withdraw their funds from an FI at once is

• A)credit risk.
• B)sovereign risk.
• C)currency risk.
• D)liquidity risk.

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Definitions:

Marginal Utility

The boost in contentment or usefulness someone achieves from consuming an additional item of a good or service.

Consumer Surplus

The variance between the price consumers intend to pay for a good or service and the price they actually incur.

Marginal Utility

The extra pleasure or benefit gained by a consumer from using one more unit of a product or service.

Total Utility

The absolute gratification obtained from the utilization of a designated complete quantity of a good or service.