On November 20, 1985, the Bank of New York Needed

question 37

Multiple Choice

On November 20, 1985, the Bank of New York needed to use the lender of last resort function due to:

• A) a run on the bank started by a rumor that the president of the bank embezzled tens of millions of dollars from the bank.
• B) a computer error caused the bank's records to wipe out the balances of all of its customers.
• C) a rumor that the bank was about to be taken over by FDIC due to insolvency.
• D) a computer error that made it impossible for the bank to keep track of its Treasury bond trades.

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Definitions:

Charter

is a formal document that establishes a body or institution and defines its rights, purposes, and responsibilities.

Provincial Legislatures

The law-making bodies in the provinces of a country, responsible for creating laws and policies applicable within their respective provinces.

Charter of Rights

A document that guarantees and protects individual liberties and rights within a specified territory or nation.

Notwithstanding Clause

A legal provision indicating that certain statements in a contract may override or prevail over other clauses within the same contract or other legal documents.