When All Depositors Converge on a Bank to Remove Their

question 38

Multiple Choice

When all depositors converge on a bank to remove their deposits there is a(n) :

• A) bank run.
• B) bank panic.
• C) liquidity crisis.
• D) financial meltdown.
• E) insolvency.

---

Definitions:

Economic System

The structured and organized way a society decides to produce, distribute, and consume goods and services.

Government Planning

The process by which governments set objectives, develop strategies, and outline activities to achieve public policy goals.

Interlocking Directorates

Are formed when an individual sits on the board of directors of two or more noncompeting companies.

Board of Directors

A group of individuals elected to represent shareholders and make decisions on major company issues, including corporate policies and strategic goals.