In a Severe Financial Crisis, If the Public Fears That

question 176

True/False

In a severe financial crisis, if the public fears that a bank's assets aren't worth enough to cover its debts, a lender of last resort is not likely to be able to prevent bankruptcy of the bank.

---

Definitions:

Cognitive Therapy

Therapy that teaches people new, more adaptive ways of thinking; based on the assumption that thoughts intervene between events and our emotional reactions.

Philippe Pinel

A French physician noted for his contributions to the humane treatment of individuals with mental health disorders in the early 19th century.

Dorothea Dix

An American advocate for the mentally ill who significantly changed the perceptions of psychiatric care in the 19th century.

Psychological Disorders

Mental disorders that significantly affect one's thinking, emotional state, and behavior, disrupting daily functioning.