Which example of bank regulations is NOT designed to prevent bank runs?

Question

Quizplus · Accepted Answer

The overnight rate is a monetary policy tool used by central banks to influence short-term interest rates and the money supply. It is not directly related to preventing bank runs, which is the sudden mass withdrawal of deposits by panicked customers. The other options (A, B, D) are all designed to prevent bank runs: reserve requirements ensure that banks have a minimum amount of cash on hand to meet withdrawals, deposit insurance protects depositors from losing their money in the event of a failure, and capital requirements mandate that banks maintain a certain level of equity to absorb losses.

Which Example of Bank Regulations Is NOT Designed to Prevent