Suppose the Rare Event Occurs That a Major Canadian Commercial

question 112

Multiple Choice

Suppose the rare event occurs that a major Canadian commercial bank is on the verge of insolvency and collapse due to volatile world credit markets.The likely initial response is

• A)a bankruptcy filing overseen by the Superintendent of Financial Institutions.
• B)the adoption of all of the bank's liabilities by the Bank of Canada as the "lender of last resort."
• C)the sale of the bank's assets to the remaining commercial banks.
• D)the provision of funds by the World Bank as the "lender of last resort."
• E)the provision of funds by the Bank of Canada as the "lender of last resort."

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Definitions:

Cerebellum

A part of the brain located at the back of the skull, vital for coordinating movement and balance, and involved in learning motor behaviors.

Basal Ganglia

Nuclei at the base of the cerebrum involved in controlling motor functions.

Midbrain

A central part of the brainstem that plays a role in vision, hearing, motor control, sleep/wake, arousal, and temperature regulation.

Cerebral Cortex

The outer layer of the cerebrum in the brain, involved in high-level brain functions such as thought, emotion, reason, and language.