A bus breaks down outside a small bank causing a big crowd.Passing bank customers think the crowd is caused by a queue of depositors withdrawing their money and so take their money out and warn their friends.You are also a depositor at the bank but realize that the run on the bank has been caused by a misconception.Your rational response is to
A) ignore the run since it is based on a misconception
B) withdraw your money also even though there is no risk of the bank failing
C) withdraw your money as there is now a risk of the bank failing
D) put more money in the bank as a show of confidence
E) ignore the run even though the bank is now at risk of failing
Correct Answer:
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Q1: Shareholders in a bank may encourage excessive
Q2: Capital adequacy regulations are designed to
A) ensure
Q4: The following questions apply to the following
Q5: The following questions apply to the following
Q6: The following questions apply to the following
Q7: Generally Speaking,bank deposits
A) average over 100% of
Q8: The key argument for a government-backed deposit
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A) are a larger share
Q10: Given the payoff matrix for a Bank
Q11: If a Bank is characterized by economies
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