Which one of the following is presently preventing bank panics in Canada?
A)the reserve requirement
B)the fractional reserve system
C)the gold standard
D)deposit insurance

Question

Quizplus · Accepted Answer

Deposit insurance is presently preventing bank panics in Canada. Deposit insurance is a system where the government or a government agency guarantees deposits made by customers in banks up to a certain amount. In Canada, the Canada Deposit Insurance Corporation (CDIC) provides deposit insurance for eligible deposits up to $100,000 per account per institution. This helps to reassure customers that their deposits are safe and prevents them from panicking and withdrawing their money en masse, which could destabilize the banking system.

Which One of the Following Is Presently Preventing Bank Panics