Which of the Following Is a Possible Impetus for a Banking

question 109

Multiple Choice

Which of the following is a possible impetus for a banking panic?

• A) An individual bank fails.
• B) A large,very important bank fails.
• C) Congress increases the amount of demand deposits that are protected by insurance.
• D) Banking rules change to make it harder for banks to make bad loans.
• E) Changes in the discount rate.

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Definitions:

Net Operating Income

The profit a company makes after deducting operating expenses from gross profit, not including income and expenses from investments and interest.

Variable Costing

An accounting method that only considers variable costs in determining the cost of products.

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product costs, excluding fixed costs.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and a portion of all overhead costs.