The fact that banks operate on a "sequential service constraint" means that
A)all depositors share equally in the bank's funds during a crisis.
B)depositors arriving last are just as likely to receive their funds as those arriving first.
C)depositors arriving first have the best chance of withdrawing their funds.
D)banks randomly select the depositors who will receive all of their funds.

Question

Quizplus · Accepted Answer

A sequential service constraint means that customers are served in the order in which they arrive. This implies that depositors who arrive first will have the best chance of withdrawing their funds, while those who arrive later may face longer wait times or potentially run out of funds. Therefore, option C is the correct answer.

The Fact That Banks Operate on a "Sequential Service Constraint