The two main reasons why runs on U.S. banks no longer occur are
A) reserve requirements and higher bank liquidity ratios.
B) a required positive financing gap and bank use of purchased liquidity.
C) the FDIC and the discount window.
D) insurance funds operated by individual states and tighter bank regulations.
E) None of these choices are correct.
Correct Answer:
Verified
Q49: What are the major sources of liquidity
Q50: The amount that a policyholder receives when
Q51: We rarely see bank runs since the
Q52: Discount window borrowing is available to
I. banks.
II.
Q53: You have the following data for a
Q55: Why might a bank face abnormal deposit
Q56: Describe the major components of a liquidity
Q57: The greater the _ ratio,the more liquid
Q58: How does reliance on purchased liquidity rather
Q59: The Fed now operates the discount window
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