Bank runs are a possibility because
A) the FDIC is inefficient.
B) bankers are often poor businesspeople.
C) in difficult times people want currency instead of demand deposits.
D) banks do not keep enough reserves to cover all their depository liabilities.
D)
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The current account deficits incurred by the United States in the 1980s were caused, in the opinion of many economists, by
A) federal budget deficits. B) a sharp decline in private saving. C) "flight to quality" as foreign investors favored U.S. investments. D) Both B and C are correct.
List the three possible ways the government can make adjustments, and the three possible ways the private sector can make adjustments, to an increase in the government's budget deficit
What will be an ideal response?
What are the main determinants of demand elasticity? Explain their importance
A bank's reserves include its
A. vault cash and deposits with the Federal Reserve. B. holdings of government bonds and corporate stocks. C. checkable deposits and holdings of government bonds. D. tellers who are ready and able to work if there is a strike by the regular tellers.