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A Bank Run Is Unlikely to Occur in Canada Today

Question 41

Multiple Choice

A bank run is unlikely to occur in Canada today because


A) if necessary,the central bank can provide all the reserves that are necessary to avoid this situation.
B) the commercial banks are required by law to maintain 100% of their deposits in cash.
C) there is relatively little demand for cash at present.
D) banking is done mostly electronically.
E) the commercial banks hold enough government securities that are convertible into cash.

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