Refer to the Article Summary. In 2015, the European Union initiated the BRRD program, where the burden of bailing out troubled banks is being placed on bank creditors, shareholders, and possibly depositors
If this program were to confiscate funds from bank deposits to assist troubled banks, the possibility of a bank run, a situation in which ________, would likely increase.
A) a majority of the shareholders in a bank decide to sell off all their shares of stock.
B) many depositors simultaneously decide to withdraw money from a bank.
C) a bank stops paying interest on all of its interest-bearing accounts.
D) a majority of the bank's loans go into default all at once.
B
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Automatic stabilizers smooth fluctuations in the economy because they produce changes in the government's budget that
A. reinforce changes in GDP. B. produce a dynamically-adjusted budget. C. produce a standardized budget. D. help offset changes in GDP.
Calculate the change in the price level for each of the following events, taken one at a time, with other variables unchanged.
(a) Money supply increases 10%. (b) Money demand increases 5% (c) Money supply decreases 5% while money demand increases 5%. (d) Money supply increases 15% while money demand increases 5%.
Which of the following would not be considered "capital" in economics? a. A delivery van used by Federal Express
b. $500 in currency. c. A microprocessor factory d. In economics, both (a) and (c) are considered capital.
Which of the following statements is true?
a. Multinational firms tend to reduce the flow of technology between countries. b. Most foreign direct investment is found in labor-intensive industries. c. Multinationals do not always help to reduce the trade deficit of the host country. d. Foreign firms contribute to a significant increase in the host country's unemployment rate. e. Foreign direct investment reduces the stock of capital of the domestic country.