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.

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Definitions:

Profit Sharing

A company policy of distributing a portion of its net profits to its employees.

Pension Plans

Financial arrangements that provide individuals with income upon retirement, often as part of their employment benefits, including defined benefit and defined contribution plans.

Agriculture Industry

The sector of the economy that specializes in the production, processing, and distribution of food, fiber, and products derived from plants and animals.