A Situation in Which a Solvent Bank Does Not Have

question 96

Multiple Choice

A situation in which a solvent bank does not have sufficient cash on hand to satisfy the withdrawal demands of depositors is called a(n) _____ crisis.

• A) lending
• B) shadow
• C) insolvency
• D) liquidity

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Definitions:

Cube Root

The number that, when multiplied by itself three times, gives the original number.

Radical Expression

A term that features a symbol representing a square root, cube root, or any root of higher degree.

Negative Exponent

A power notation indicating division by the base raised to the absolute value of the exponent.

Square Root

A value that, when multiplied by itself, gives the original number, denoted as √.