Bank Runs Are a Possibility Because

question 64

Multiple Choice

Bank runs are a possibility because

• A)the CDIC is inefficient.
• B)bankers are often poor business people.
• C)in difficult times people want currency instead of demand deposits.
• D)banks do not keep enough reserves to cover all their depository liabilities.

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Definitions:

Psychological Contract

Beliefs held by employees regarding the reciprocal obligations and promises between them and their organization.

Performance Expectations

Standards or benchmarks set by an organization or leader against which an individual's or group's performance is measured.

Socialization Process

The process through which individuals learn and internalize the values, behaviors, and norms of a society or group.

Uncertainty Reduction Theory

A communication theory that suggests individuals engage in strategies to reduce uncertainties about others in initial interactions.