The government safety net provisions to reduce the bank's vulnerability to withdrawal risk include

Question

Quizplus · Accepted Answer

All of the options listed are government safety net provisions that help reduce the bank's vulnerability to withdrawal risk. 
- The lender-of-the-last-resort facility provides a backstop for banks that experience liquidity problems by lending them money to meet their obligations to depositors and other creditors. 
- The too-big-to-fail policy aims to reduce systemic risk by ensuring that large, interconnected banks receive support from the government in times of financial distress. 
- The protection of the payment systems ensures that payments can be made reliably and efficiently, reducing the risk of failure or disruption in the banking system.

The Government Safety Net Provisions to Reduce the Bank's Vulnerability