Why Is the Possibility of a Bank Run Extremely Small

question 95

Multiple Choice

Why is the possibility of a bank run extremely small in Canada today?

• A)The Bank of Canada guarantees the deposits at all commercial banks in Canada,eliminating the danger of a rush of withdrawals.
• B)The Department of Finance guarantees the deposits at all commercial banks in Canada,eliminating the danger of a rush of withdrawals.
• C)The Canadian Deposit Insurance Corporation provides deposit insurance on eligible deposits,so most depositors would not feel the need to withdraw all of their money in a panic.
• D)The Office of the Superintendent of Financial Institutions provides deposit insurance on eligible deposits,so most depositors would not feel the need to withdraw all of their money in a panic.
• E)Industry Canada guarantees the deposits at all commercial banks in Canada,eliminating the danger of a rush of withdrawals.

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Definitions:

Divide

The process of splitting a number into equal parts or groups, or finding how many times one number is contained within another.

Multiply

The arithmetic operation of scaling one number by another, essentially repeated addition.

Multiply

The arithmetic process of calculating the result of adding a number to itself a certain number of times.

Simplify

To simplify means to reduce an expression or equation to its simplest form, by combining like terms, reducing fractions, etc.