Which of the Following Represents a Preventative Measure Against Bank

question 13

Multiple Choice

Which of the following represents a preventative measure against bank runs?

• A) The President of the United States can order banks to pay depositors.
• B) The Federal Reserve can lower reserve requirements to ensure that banks have sufficient funds.
• C) The FDIC provides deposit insurance.
• D) None of the above is correct.

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Definitions:

Overhead Expenses

Costs that are not directly tied to the production of goods or services, such as rent, utilities, and administrative expenses.

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of interest and tax.

Markdown

A reduction from the original or retail price of a product or service, often used to stimulate sales or clear inventory.

Real Estate Commission

The fee paid to a real estate agent or broker for their services, usually a percentage of the property's sale price.