Which of the Following Is a Possible Drawback of a Bank

question 76

Multiple Choice

Which of the following is a possible drawback of a bank run?​

• A)​It leaves the banks with excess reserves.
• B)​It leads to a fall in investment activities because of lack of loans available to business firms.
• C)​It leads to a fall in the demand for loans by the business firms.
• D)​It leads to an excessive increase in the supply of money by the banks.

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Definitions:

Fair and Accurate Credit Transactions Act

A federal law enacted to enhance consumer protection against identity theft and to improve the accuracy of consumer records.

Identity Theft

The fraudulent acquisition and use of a person's private identifying information, usually for financial gain.

Credit Reporting

The process by which companies called credit bureaus collect, maintain, and provide information about an individual's or company's credit history.

Consumer Product Safety Act

A federal law aimed at protecting consumers from unsafe products, establishing guidelines and standards for product manufacture and sale.