Why Is It Unlikely That a Bank Run Will Occur

question 15

Multiple Choice

Why is it unlikely that a bank run will occur in Canada today?

• A)Because if necessary,the central bank can provide all the reserves that are necessary to avoid this situation.
• B)Because the commercial banks are required by law to maintain 100% of their deposits in cash.
• C)Because there is relatively little demand for cash at present.
• D)Because banking is done mostly electronically.
• E)Because the commercial banks hold enough government securities that are convertible into cash.

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Definitions:

RBCs

Red Blood Cells, also known as erythrocytes, are cells in the blood that carry oxygen from the lungs to body tissues and return carbon dioxide to the lungs.

Antigens

Substances, often foreign, that induce an immune response in the body, especially the production of antibodies.

IgG

A type of antibody that plays a crucial role in the body's immune response by neutralizing pathogens.

IgM

Immunoglobulin M, a type of antibody that is produced as a first response to a new infection, providing initial protection.