Which of the Following Statements Is True

question 28

Multiple Choice

Which of the following statements is true?

• A)Bank failures may destroy household savings and restrict a firm's access to credit.
• B)Bank failures may create doubts in savers' minds regarding the stability and solvency of financial intermediaries in general.
• C)Bank failures may threaten the stability of the financial system.
• D)All of the listed options are correct.

---

Definitions:

Contribution Margin Ratios

The ratio of the contribution margin to sales revenue, expressing the percentage of revenue that contributes to fixed costs and profits after variable costs are covered.

R-Squared

A statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Dependent Variable

A variable in an experiment or study whose changes depend on the manipulation of one or more independent variables.

Independent Variable

An independent variable is a condition or factor that can be manipulated in an experiment to determine its effect on a dependent variable, establishing cause-and-effect relationships.