If People Believe That a Bank Is Going to Fail

question 119

Multiple Choice

If people believe that a bank is going to fail, this can cause them to pull their money out of the bank. This, in turn, may lead to the bank's failure. What does this situation illustrate?

• A) self-fulfilling prophecy
• B) status conflict
• C) role conflict
• D) economic crisis

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Definitions:

Journal Entries

The basic means of recording financial transactions in the accounting records, consisting of debits and credits to various accounts.

Vouchers

Documents that serve as evidence of authority to make a payment and usually support transactions before they are processed.

Currency

The system of money in general use in a particular country, recognized as a medium of exchange for goods and services.

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A progressive neurodegenerative disorder characterized by cognitive decline, memory loss, and changes in behavior and personality.