A Run on a Bank Occurs When Everyone Is Trying

question 91

True/False

A run on a bank occurs when everyone is trying to withdraw their funds simultaneously.

---

Definitions:

Intrinsic Value

The actual worth of an asset or investment, determined through fundamental analysis without reference to its market value.

Accrual Accounting

A bookkeeping technique where income and costs are logged at the point of occurrence, irrespective of the actual cash exchange dates.

Future Cash Flows

The estimated amount of money to be received or paid out over future periods as a result of investments, operations, or financing.

Distributable Cash Flow

A measure of the cash available for distribution to shareholders, often used in assessing the health of a company or a fund.