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The Existence of Deposit Insurance Can Prevent a Bank Run

Question 65

Multiple Choice

The existence of deposit insurance can prevent a bank run because:


A) the depositors with accounts greater than $1,000,000 are guaranteed to get their deposits in case the bank fails.
B) the depositors with accounts less than $1,000,000 are guaranteed to get their deposits in case the bank fails.
C) the depositors with accounts less than $100,000 are guaranteed to get their deposits in case the bank fails.
D) the depositors with accounts greater than $100,000 are guaranteed to get their deposits in case the bank fails.

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