For Most Consumers, the Process of Gathering Information Can Be

question 133

Multiple Choice

For most consumers, the process of gathering information can be considered

• A)irrational
• B)unproductive
• C)a vocation
• D)nonmarket work
• E)costless

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Definitions:

Banks

Banks are financial institutions licensed to receive deposits and provide loans, along with offering various other financial services.

Bank Panics

A situation in which a large number of bank customers withdraw their deposits simultaneously due to fears that the bank will become insolvent.

Deterrent

A factor or policy intended to discourage certain behaviors by instilling fear of the consequences.

Fractional Reserve

A banking system in which banks hold a fraction of the deposits as reserves, lending the rest to generate profit.