A Bank Run Can Break a Bank Because

question 94

Multiple Choice

A bank run can break a bank because:

• A) borrowers default on their loans, and the bank's assets become worthless.
• B) banks cannot quickly convert illiquid loans to liquid assets without facing a large financial loss.
• C) depositors' panic spreads to borrowers, who want to take additional loans from the bank.
• D) the bank's reserves kept with the Federal Reserve are in the form of illiquid U.S. Treasury bonds.

Appreciate the impact of stereotypes and self-fulfilling prophecies on individual behaviors and societal expectations.

Examine the role of cognitive dissonance in attitude and behavior change.

Acknowledge the contributions of key psychological experiments and theories to the understanding of social behaviors.

Differentiate between internal and external attributions in explaining behaviors.

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Definitions:

Camber

The angle of the wheels in relation to the road surface, seen from the front of the vehicle, which can affect tire wear and vehicle handling.

Caster

The angle of the steering axis in a vehicle, which affects stability, steering effort, and cornering behavior.

Zero Toe

A wheel alignment condition where the front of the wheels are parallel to each other, neither pointing towards nor away from the vehicle.

Rear Toe

The angle at which the rear wheels of a vehicle are oriented in relation to its longitudinal axis, affecting stability and cornering.