A Bank Run Is Unlikely to Occur in Canada Today

question 41

Multiple Choice

A bank run is unlikely to occur in Canada today because

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

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Definitions:

Environmental Stimuli

External factors or conditions in the environment that can evoke responses or reactions in organisms.

Perceptual Categorizations

The process by which the brain groups sensory inputs into recognizable categories.

Nativist Philosopher

An individual who theorizes that certain skills or abilities are innate and not acquired through learning.

Immanuel Kant

An 18th-century German philosopher who made significant contributions to various areas of philosophy, especially in epistemology, ethics, and aesthetics.