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.

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Definitions:

Mediation

A method of settling disputes outside of court by using the services of a neutral third party, who acts as a communicating agent between the parties and assists them in negotiating a settlement. A method of dispute settlement that is less formal than arbitration.

ADR

Acronym for Alternative Dispute Resolution, which refers to methods like mediation and arbitration used to settle disputes without traditional litigation.

Negotiation

A process in which parties attempt to settle their dispute voluntarily, with or without attorneys to represent them.

Settlement Agreement

An out-of-court resolution to a legal dispute, agreed to by the parties in writing. A settlement agreement may be reached at any time prior to or during a trial.