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6. In an economy 'a la Diamond and Dybvig (1983)' where the long-term investment has a return of R = 2.25, and the bank offers
6. In an economy 'a la Diamond and Dybvig (1983)' where the long-term investment has a return of R = 2.25, and the bank offers r1 = 1.25 for early withdrawals or r2 = 1.947 for late withdrawals, would 58% of depositors withdrawing in the first period generate a bank run? a. Yes C. b. Yes, but only if late depositors would earn a return less than r2 No d. Yes, but only if there is deposit insurance in place 1. What is the primary problem that prevented digital cash from expanding before the development of blockchain technology? a. The lack of physical space to store all the digital transactions b. The vulnerability of digital cash to the double-spending problem C. The lack of trust of individuals to perform transactions using digital cash d. The disagreement among individuals on a consensus mechanism to verify transactions
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