All of the following are regulations designed to prevent bank runs EXCEPT:
A)asset bubbles.
B)capital requirements.
C)reserve requirements.
D)provisions that allow banks to borrow from the Fed's discount window.

Question

Quizplus · Accepted Answer

Asset bubbles are not directly related to preventing bank runs, but rather refer to situations where asset prices rise to unsustainable levels and then subsequently decline rapidly, potentially causing a financial crisis. Capital requirements, reserve requirements, and provisions for borrowing from the Fed's discount window are all designed to ensure that banks have sufficient liquidity and capital to withstand a sudden outflow of deposits and prevent bank runs.

All of the Following Are Regulations Designed to Prevent Bank