Multiple Choice
The two main reasons why runs on U.S. banks no longer occur are
A) reserve requirements and higher bank liquidity ratios.
B) a required positive financing gap and bank use of purchased liquidity.
C) the FDIC and the discount window.
D) insurance funds operated by individual states and tighter bank regulations.
E) None of these choices are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q34: An increasingly positive financing gap can indicate
Q35: A DI has highly liquid assets if
Q36: The financing gap is defined as average
Q37: Which of the following can create liquidity
Q38: Explain the relationship between each of the
Q40: The greater the _ ratio,the more liquid
Q41: A bank meets a deposit withdrawal with
Q42: Describe the major components of a liquidity
Q43: Using stored liquidity to offset a deposit
Q44: A widely accepted method measuring liquidity risk