The Argument That Deposit Insurance Can Prevent the Failure of an Otherwise

question 47

Multiple Choice

The argument that deposit insurance can prevent the failure of an otherwise sound bank is based on the idea that

• A) bank examinations by the Canada Deposit Insurance Corporation (CDIC) weed out badly managed banks.
• B) the existence of deposit insurance may prevent self-fulfilling panics.
• C) potential deposits need not be concerned about account overdrafts.
• D) deposit insurance restores confidence in the stock market.
• E) deposit insurance restores confidence in the bond market.

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Definitions:

Nuclear Family

A family unit consisting of two parents and their children, living together as a single household.

Social Networks

The structures formed by individuals connecting with each other, through personal relationships or technology.

Feminization

Feminization refers to the process or trend of adopting feminine characteristics or roles, typically used in contexts such as the feminization of poverty or labor.

Economic Self-Sufficiency

The state of having sufficient financial resources to meet one's needs without being dependent on others for income.