The ECB Would Be Unable to Prevent a Large Banking

question 147

Multiple Choice

The ECB would be unable to prevent a large banking crisis in the Eurozone because:

• A) it can print money but is prohibited from lending to banks or central banks in the member states.
• B) crises of such proportions would require an international effort.
• C) deposits in banks in the Eurozone have FDIC insurance and are therefore out of the control of the ECB.
• D) its assets are inadequate.

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Definitions:

Measures

Quantitative or qualitative tools and methods used to evaluate, assess, or obtain data on various variables or phenomena.

Situation vs. Trait

Situation refers to the external environment that can influence behavior temporarily, while trait denotes enduring characteristics that influence behavior across different situations.

Mischel

Walter Mischel, an Austrian-born psychologist best known for his research on personality and his development of the cognitive-affective personality system (CAPS) theory.

Criticisms

Expressions of disapproval based on perceived mistakes or faults.