Bank Failure Is Less Likely to Occur When a Bank

question 103

Multiple Choice

Bank failure is less likely to occur when a bank

• A) holds less in U.S. government securities.
• B) suffers large deposit outflows.
• C) holds more excess reserves.
• D) has less bank capital.

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Definitions:

Positive

A characteristic or attribute that denotes optimism, constructiveness, or a beneficial nature in a situation or in an individual’s demeanor.

Culture Adaptation

The process of adjusting and adapting to a culture different from one's own, often involving learning new behaviors, norms, and values.

Disintegration

The process of breaking down or being broken down into smaller parts, losing cohesion or unity.

Nervousness

A feeling of anxiety or apprehension often experienced in anticipation of a specific event or situation.