A Banking Panic Is an Episode in Which

question 92

Multiple Choice

A banking panic is an episode in which:

• A)depositors, spurred by news or rumors of possible bankruptcy of one bank, rush to withdraw deposits from the banking system.
• B)commercial banks, fearing Federal Reserve sanctions, unwillingly participate in open-market operations.
• C)commercial banks, concerned about high interest rates, rush to borrow at the Federal Reserve discount rate.
• D)depositors, afraid of increasing interest rates, attempt to engage in discount-window borrowing at the Federal Reserve.

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Definitions:

African Americans

A racial or ethnic group in the United States with origins in any of the black populations of Africa.

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Individuals in the United States who identify as having European ancestry.

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Experts focused on the interaction of biological, psychological, and social elements and their impact on health and disease.

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