17-29 Deposit insurance is the only deterrent to bank runs,contagious runs,and bank panics.

Question

Quizplus · Accepted Answer

While deposit insurance can be a deterrent to bank runs and panics, there are other measures that can also help prevent them. For example, maintaining adequate reserves and having access to emergency liquidity can help reassure depositors and prevent a crisis from spreading. Additionally, effective regulation and supervision can help identify and address potential problems before they escalate.

17-29 Deposit Insurance Is the Only Deterrent to Bank Runs,contagious