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:

Potential Problems

Issues or challenges that may arise in the future or under certain conditions.

Inductive Reasoning

A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.

Generalization

A broad statement or concept obtained by inference from specific cases.

Specific Conclusion

A definitive end or resolution that directly addresses the particular issue or topic at hand.