An Ideal Solution to React to a Large Failing Bank

question 58

True/False

An ideal solution to react to a large failing bank would prevent a run on deposits of other large banks, yet not reward a poorly performing bank with a bailout.

---

Definitions:

Short-Term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.

Prefrontal Cortex

A region of the brain located at the front of the frontal lobes, associated with complex behaviors, decision making, and moderating social behavior.

Temporal Lobes

Areas of the cortex located along the side of the brain, starting just behind the temples, containing the neurons responsible for the sense of hearing and meaningful speech.

Short-Term Memories

The phase of memory where small amounts of information can be stored for a short period of time.