If People Speculate That a Run on One Bank Will

question 251

Multiple Choice

If people speculate that a run on one bank will cause a run on all banks in the financial system,and this speculation proves accurate,then the financial system would experience what is known as a

• A)commodity crisis.
• B)securitization meltdown.
• C)bank panic.
• D)institutional death spiral.

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Definitions:

Behavioral Contracting

A therapy technique involving a written agreement between a therapist and client to modify the client's behavior.

Classical Conditioning

A learning process in which a natural response to a certain stimulus becomes triggered by a previously neutral stimulus after repeated pairings.

Token Economy

A behavior modification system that uses tokens as a form of reinforcement for desirable behaviors, which can later be exchanged for rewards.

Transactional Analysis

A psychotherapeutic approach that examines interactions and transactions between people to understand their communication and behavior.