Solved

Why Is It Unlikely That a Bank Run Will Occur

Question 41

Multiple Choice

Why is it unlikely that a bank run will occur in Canada today?


A) Because if necessary,the central bank can provide all the reserves that are necessary to avoid this situation.
B) Because the commercial banks are required by law to maintain 100% of their deposits in cash.
C) Because there is relatively little demand for cash at present.
D) Because banking is done mostly electronically.
E) Because the commercial banks hold enough government securities that are convertible into cash.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents