A Banking Crisis Occurs

question 103

Multiple Choice

A banking crisis occurs:

• A)whenever there is an asset bubble.
• B)if shadow banks begin to accept deposits.
• C)when banks engage in maturity transformation by accepting short-term deposits and converting them into long-term loans or investments.
• D)when a large part of the depository banking sector or the shadow banking sector fails or threatens to fail.

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Definitions:

Social

Relating to society, or the organization and functioning of human communities.

Maslow Hierarchy

A theory in psychology proposed by Abraham Maslow, depicting a five-tier model of human needs, arranged in a pyramid with basic needs at the bottom and self-actualization at the top.

Psychosocial Influences

The impact of societal and interpersonal factors on an individual's thoughts, feelings, and behaviors, particularly in the context of consumer behavior.

Products Pyramid

A hierarchical representation of a company’s product lines or portfolio, ranging from the core, fundamental products to niche, specialized items.