In a panic, why is there an incentive for depositors to rush the bank?Banks make money from interest on loans, and the depositors who arrive late get lower rates.O Only the first few customers get the free toaster.The first arrivals had the option to purchase stock whereas late arrivals must short sell.O The bank holds only a fraction of liabilities as cash, so depositors who arrive late won't get money.

One of the main function of bank is accepting deposits. Deposits refers to the money placed into…

In a panic, why is there an incentive for depositors to rush the bank? O Banks make money from interest on loans, and the depositors who arrive late get lower rates. O Only the first few customers get the free toaster. O The first arrivals had the option to purchase stock whereas late arrivals must short sell. O The bank holds only a fraction of liabilities as cash, so depositors who arrive late won't get money.

In a panic, why is there an incentive for depositors to rush the bank? O Banks make money from interest on loans, and the depositors who arrive late get lower rates. O Only the first few customers get the free toaster. O The first arrivals had the option to purchase stock whereas late arrivals must short sell. O The bank holds only a fraction of liabilities as cash, so depositors who arrive late won't get money.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If a bank gets $100 in new reserves from the Fed and the required-reserve ratio is 0.2, then the O rate of interest falls in the economy O money supply grows by $500 O money multiplier is 5 O all of the above
Fill in the blanks to complete sentence. 10. While the bank is issuing a guarantee, the principal will be asked to sign a ____________ to authorize the guarantor to debit the account with the cost of any payments under the guarantee.
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