Using the Mnemonic ROY G

question 215

Multiple Choice

Using the mnemonic ROY G.BIV to remember the colors of the rainbow in the order of wavelength illustrates the use of

• A) the testing effect.
• B) acronyms.
• C) the spacing effect.
• D) mnemonics.

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Definitions:

Deposit Insurance

A protection scheme that guarantees a depositor's money in the event of a bank failure, up to a certain limit.

Big Banks

Large financial institutions that hold a significant portion of a country's total banking assets.

Moral Hazard

A situation in which one party engages in risky behavior knowing that it is protected against the consequences, often because another party bears the cost of those actions.

Deposits Insured

A guarantee by a government or private entity that deposits in banks and financial institutions will be protected up to a certain limit in case of bank failure.