A Major Problem with Bank Runs Is That They

question 130

Multiple Choice

A major problem with bank runs is that they:

• A) spread to other banks.
• B) cause inflation because the money moves so fast.
• C) drive down interest rates.
• D) drive down both inflation and interest rates.

---

Definitions:

Continuous Random Variable

A continuous random variable is a variable that can take an infinite number of values within a given range where each value is measurable.

Continuum

A continuous sequence or range of values where there is no clear division between one state and the next.

Standard Normal Random Variable

A normal distribution with a mean of zero and a standard deviation of one, used in statistical analysis.

P

In statistics, typically refers to the p-value, which measures the probability of observing a statistical summary as extreme as the one observed, under the null hypothesis.