Today,bank Runs Are Not a Major Problem for the U

question 10

Multiple Choice

Today,bank runs are not a major problem for the U.S.banking system because

• A)bank runs are now illegal.
• B)banks now hold 100 percent of their deposits in reserve.
• C)banks are now all government-operated.
• D)the federal government now guarantees the safety of deposits at most banks.

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Definitions:

Establish

To set up or found something on a firm or permanent basis, especially an organization or institution.

Employee Ownership

Employee ownership involves employees holding a stake in the company they work for, often through stock options or an employee stock ownership plan (ESOP).

Proctor & Gamble

An American multinational corporation specializing in a wide range of consumer goods, including personal care and household products.

Preferred Shareholders

Investors holding shares that give them priority over common shareholders in terms of dividends and asset distribution.