Generally, the Failure of Small Banks

question 59

Multiple Choice

Generally, the failure of small banks

• A) causes more widespread concern about the safety of the banking system than the failure of large banks.
• B) causes equal concern about the safety of the banking system as the failure of large banks.
• C) causes less concern about the safety of the banking system than the failure of large banks.
• D) Either A or B can be true, depending on the type of business cycle that exists while the failures occur.

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Definitions:

Independent Events

Events in probability where the outcome of one event does not affect the outcome of another.

Driving Test

An examination that assesses a person's ability to operate and maneuver a vehicle safely and according to the laws of the road.

Probability

The measure of the likelihood that an event will occur; expressed as a number between 0 and 1.

Random

Lacking any definite plan or order or purpose; governed by or depending on chance.