Question

QUESTION 61 Which statement best describes bank runs today? a. Bank runs are uncommon because of the high required reserve ra
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer:-

Correct Option is Option D.

Banks runs are uncommon because of CDIC deposit insurance.

A bank run occurs when a large number of customers of a bank or another financial institution withdraw their deposits at once. Although bank runs are rare, they can have a significant impact on the economy and tend to reduce confidence in the financial system.

The probability that individuals will run a bank or other financial institution increases by 40 percentage points if they are not aware that there is deposit protection

The research shows that depositors who are made aware of government-backed deposit protection (such as that provided by CDIC) quickly and easily decide not to run a bank or other financial institution. The optimal level of awareness to reduce the risk of bank runs is between 60% and 65% of Canadians.

Add a comment
Know the answer?
Add Answer to:
QUESTION 61 Which statement best describes bank runs today? a. Bank runs are uncommon because of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Which statement best explains the role of the Canadian Deposit Insurance Corporation (CDIC)? The CDIC protects...

    Which statement best explains the role of the Canadian Deposit Insurance Corporation (CDIC)? The CDIC protects commercial banks in the event of mortgage defaults The CDIC protects depositors in the event of bank failures. The CDIC determines the reserve requirement. The CDIC determines the bank rate. Question 20 (1 point) Since 1994, what was phased out as a tool used by the Bank of Canada to control the money supply? changing reserve requirements changing the overnight rate open-market operations foreign...

  • Today, bank runs are not a major problem for the U.S. banking system because a bank...

    Today, bank runs are not a major problem for the U.S. banking system because a bank runs are now illegal b. banks now hold 100 percent of their deposits in reserve. c. banks are now all government-operated d. the federal government now guarantees the safety of deposits at most banks. 

  • Which statement best describes the outcomes of a decrease in reserve requirements? The reserve ratio increases,...

    Which statement best describes the outcomes of a decrease in reserve requirements? The reserve ratio increases, the money multiplier decreases, and the money supply decreases. The reserve ratio decreases, the money multiplier decreases, and the money supply decreases. The reserve ratio decreases, the money multiplier increases, and the money supply increases. The reserve ratio increases, the money multiplier increases, and the money supply increases. Question 16 (1 point) Suppose the reserve ratio is 10 percent and banks do not hold...

  • 17. Which statement best defines the bank rate? a. It is the interest rate the Bank...

    17. Which statement best defines the bank rate? a. It is the interest rate the Bank of Canada charges banks. b. It is one divided by the difference between one and the reserve ratio. c. It is the interest rate banks receive on reserve deposits with Bank of Canada. d. It is the interest rate that banks charge on overnight loans to other banks.

  • Which statement best describes the outcome of a decrease in the bank rate? a. Banks will...

    Which statement best describes the outcome of a decrease in the bank rate? a. Banks will borrow less from Bank of Canada, so reserves increase. b. Banks will borrow less from Bank of Canada, so reserves decrease. c. Banks will borrow more from Bank of Canada, so reserves increase. d. Banks will borrow more from Bank of Canada, so reserves decrease.

  • The histogram shows a distribution of girls height in inches. What statement best describes the distribution?...

    The histogram shows a distribution of girls height in inches. What statement best describes the distribution? The histogram shows a distribution of girls' heights in inches. 35 30 25 20 2 15 10 0 61 63 65 67 69 71 Height of Girls (in) Which statement best describes the distribution? Height of Girls (in) Which statement best describes the distribution? O A The data is positively skewed because the majority of the data is clustered to the left of the...

  • 12. Amino acids are building blocks of proteins. Which statement best describes the physical properties of...

    12. Amino acids are building blocks of proteins. Which statement best describes the physical properties of the following amino acid? A) high melting points and low solubility in water B) large dipole moments and no hydrogen bonding C) high melting points and large dipole moments D) low solubility in water and small dipole moments E) small dipole moments and are hydrophobic

  • Which statement best describes why graphite is soft: Select one: O a. None of the above...

    Which statement best describes why graphite is soft: Select one: O a. None of the above O b. Graphite is layered c. Graphite is made up of only carbon atoms O d. Graphite has low melting point ge

  • Which of the following describes a market that is inefficient because it violates the assumption that...

    Which of the following describes a market that is inefficient because it violates the assumption that there is an open market free of entry barriers? O A. Taxi cabs are required to display one of a limited number of medallions in order to operate in New York City. OB. Restaurants at the beach often refuse to allow customers to enter without shoes. O C. The University of Pittsburgh does not accept applicants without a high school diploma. O D. Several...

  • 7 Which statement best describes Copernicus' approach to modeling the solar system? is out of Question...

    7 Which statement best describes Copernicus' approach to modeling the solar system? is out of Question Select one O a. He made detailed observations, and the resulting calculations bed him to heliocentricity, O b. He believed that spheres such as planets naturally move in circles, therefore he assumed heliocentricity because it was simpler than what had come before O c. He was a revolutionary thinking looking to completely overthrow the astronomical theories of the past. d. He consulted with colleagues...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT