A Banking Panic Occurs When

question 3

Multiple Choice

A banking panic occurs when

• A) many banks fail simultaneously
• B) banks do not earn enough profit
• C) a bank exhausts all of its vault cash
• D) individuals cannot withdraw money from a bank
• E) bank officials fear they have made too many bad loans

Comprehend the legal responsibilities of innkeepers and the rights of their guests.

Distinguish between tangible and intangible personal property.

Understand the conditions under which a person can claim ownership or possession of property.

Recognize the legalities involved in conditional gifts and their revocability.

---

Definitions:

Capital Structure Policy

A company's decisions and strategies regarding the mix of its financing sources (debt and equity) to fund its operations and growth.

Financial Risk

The likelihood of financial setbacks in an investment or business initiative.

Interest Tax Shield

Lowering income taxes through the deduction of debt interest payments from taxable earnings.

Debt

An amount of money that is owed by one party to another, usually as a result of borrowing.