Why Is the Possibility of a Bank Run Extremely Small

question 95

Multiple Choice

Why is the possibility of a bank run extremely small in Canada today?

• A)The Bank of Canada guarantees the deposits at all commercial banks in Canada,eliminating the danger of a rush of withdrawals.
• B)The Department of Finance guarantees the deposits at all commercial banks in Canada,eliminating the danger of a rush of withdrawals.
• C)The Canadian Deposit Insurance Corporation provides deposit insurance on eligible deposits,so most depositors would not feel the need to withdraw all of their money in a panic.
• D)The Office of the Superintendent of Financial Institutions provides deposit insurance on eligible deposits,so most depositors would not feel the need to withdraw all of their money in a panic.
• E)Industry Canada guarantees the deposits at all commercial banks in Canada,eliminating the danger of a rush of withdrawals.

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Definitions:

UCC Article 9

A provision of the Uniform Commercial Code dealing with secured transactions, including the assignment of security interests in personal property.

Contract Rights

Legal entitlements derived from agreements between parties, which outline obligations, benefits, and conditions agreed upon.

Assignable

Capable of being transferred or made over to the legal control of another party, commonly referring to rights or property under contract.

Donee Beneficiary

A third party who stands to benefit from the execution of a contract, although not a direct party to the agreement.