The Most Effective Mechanism for Reducing Runs on Banks Is

question 26

Multiple Choice

The most effective mechanism for reducing runs on banks is _____.

• A)the discount rate
• B)deposit insurance
• C)the reserve requirement
• D)open-market operations
• E)the Federal Reserve note

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Definitions:

Resting Membrane Potential

The electric potential difference across the cellular membrane when the cell is in a non-excited state, crucial for the transmission of nerve impulses.

Plasma Membrane

The cellular barrier that delineates the inside of all cells from their external surroundings, regulating the passage of materials into and out of the cells.

Repolarization

The process by which a cell's membrane potential returns to its resting state following depolarization.

Resting Membrane Potential

The electric potential difference across the membrane of a resting (non-active) cell, essential for the transmission of nerve impulses.