A bank run is unlikely to occur in Canada today because
A) if necessary,the central bank can provide all the reserves that are necessary to avoid this situation.
B) the commercial banks are required by law to maintain 100% of their deposits in cash.
C) there is relatively little demand for cash at present.
D) banking is done mostly electronically.
E) the commercial banks hold enough government securities that are convertible into cash.
Correct Answer:
Verified
Q28: Commercial banks in Canada are prohibited by
Q30: Which of the following entries would appear
Q44: Why is the possibility of a bank
Q45: Consider the following list of entries that
Q47: The Canada Deposit Insurance Corporation (CDIC)was set
Q48: "Excess reserves" for a commercial bank refer
Q49: A commercial bank's target reserve ratio is
Q54: Which of the following statements about reserve
Q56: Canadian commercial banks maintain their reserves in
Q59: Which of the following entries would appear
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents