A Bank Run Is Unlikely to Occur in Canada Today

question 77

Multiple Choice

A bank run is unlikely to occur in Canada today because,

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

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Definitions:

Moderator

A person or substance that reduces the pace of a chemical reaction or moderates the discussion in a meeting or forum.

Nuclear Reactor

A device used to initiate and control a sustained nuclear chain reaction, primarily for the generation of electricity.

Net Useful Energy

The amount of energy available for use after subtracting the energy lost in conversion, transmission, and distribution processes.

Fissionable Fraction

The portion of a nuclear fuel that can undergo fission, the process by which atomic nuclei split to release energy.