When a Bank Run Spreads from One Bank to Another

question 18

Multiple Choice

When a bank run spreads from one bank to another, it is said to be

• A)contagion.
• B)a loss of depositor's credibility.
• C)a loss of reserves.
• D)an over-run.

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Definitions:

Agents of Destruction

Refers typically to factors or entities that cause significant harm or damage, whether physically, psychologically, or environmentally.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically showing improved performance on simple or well-rehearsed tasks.

Reciting

Speaking aloud from memory, often practiced with poems, speeches, or other text materials.