In the USEconomy,a Major Deterrent to Bank Runs Is

question 53

Multiple Choice

In the U.S.economy,a major deterrent to bank runs is

• A) the fact that most banks keep 50 percent of their deposits as reserves.
• B) government ownership of commercial banks.
• C) the stock of gold owned by the government.
• D) the ability of commercial banks to create money when needed.
• E) the FDIC.

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Definitions:

Labor Unions

Organizations that represent workers' interests, negotiating wages, work conditions, and benefits through collective bargaining.

NAFTA

The North American Free Trade Agreement, an accord among the United States, Canada, and Mexico designed to remove tariff barriers between the respective countries.

American Products

Goods that are manufactured or produced within the United States.

Midterm Election

Elections held midway through the term of the President of the United States, used to elect various members of congress, including all of the House of Representatives and one-third of the Senate.