The Two Main Reasons Why Runs on U

question 15

Multiple Choice

The two main reasons why runs on U.S. banks no longer occur are

• A) reserve requirements and higher bank liquidity ratios.
• B) a required positive financing gap and bank use of purchased liquidity.
• C) the FDIC and the discount window.
• D) insurance funds operated by individual states and tighter bank regulations.
• E) none of the above

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Definitions:

Perspective Taking

The cognitive capacity to consider a situation from the point of view of another person, fostering empathy and understanding in social interactions.

Possible Selves

The aspects of oneself that an individual imagines they could become, might become, or are afraid of becoming in the future.

Possible Self

A component of self-concept that represents an individual's ideas of what they might become, what they would like to become, and what they are afraid of becoming.

Afraid Of Becoming

The fear or anxiety about evolving into someone or something that one does not want to be.