Which Entity Acts to Protect Depositors from a Bank Run

question 274

Multiple Choice

Which entity acts to protect depositors from a bank run by insuring all deposits up to $100 000?

• A) the CDIC
• B) the Ministry of Finance of Justice
• C) the Bank of Canada
• D) the Parliamentary Budget Office

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of numeric values.

Risky Asset

A financial instrument that has a significant degree of risk associated with it, potentially leading to loss or gain.

Negatively Correlated

Describes two variables that move in opposite directions; as one increases, the other tends to decrease.

Variance

A measure of the dispersion of a set of data points around their mean value, indicating how spread out the data points are.