A Key Property of a Diamond-Dybvig Bank Is

question 19

Multiple Choice

A key property of a Diamond-Dybvig bank is

• A) it is well-diversified.
• B) it lends to borrowers.
• C) it provides benefits very different from the provision of insurance.
• D) it trades with other banks.

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Definitions:

Interpersonal Therapy

A brief, attachment-focused psychotherapy that centers on resolving interpersonal problems and symptomatic recovery.

Cognitive-behavioral Therapy

A form of psychotherapy that treats problems and boosts happiness by modifying dysfunctional emotions, behaviors, and thoughts.

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud that emphasizes unconscious processes and unresolved past conflicts.

Pessimistic Explanatory

A tendency to explain negative events as being prevalent, unchangeable, and indicative of personal failure.