The Collapse of One Bank Might Lead Easily to the Failure

question 68

Multiple Choice

The collapse of one bank might lead easily to the failure of several others,because ________.

• A)depositors cannot trust each other to keep their money in the bank
• B)deposit insurance renders all banks equally fragile
• C)no bank can survive when its competitors cease to operate
• D)government regulators will step in to punish any bank suspected of poor management

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Definitions:

Homosexuality

Emotional and sexual attraction between persons of the same sex. See also straight.

Product Life Cycle

A concept that describes the stages a product goes through from when it is first introduced to the market until it is discontinued.

Cannibalization

When a company's new product eats into the sales of one of its existing products, potentially reducing overall sales revenue.

Pricing Constraints

Limitations or factors that affect the setting of prices for goods and services, such as cost of production, competition, and customer demand.