17. Bank depositors will not lose their deposits in a banking panic if:?

Question

17. Bank depositors will not lose their deposits in a banking panic if:

A. there is fractional reserve banking.

B. there is 100% reserve banking.

C. there is a central bank.

D. the actual reserve/deposit ratio equal to the desired reserve/deposit ratio.

E. the actual reserve/deposit ratio is less than the desired reserve/deposit ratio.

18. Deposit insurance is a system in which the government guarantees that:

A. depositors will not lose any money even if their bank goes bankrupt.

B. people can have deposits at commercial banks.

C. commercial banks will not go bankrupt.

D. depositors of commercial banks can obtain low-cost life insurance.

E. commercial banks will not lose any deposits.

Answer 1

B. there is 100% reserve banking.

A. depositors will not lose any money even if their bank goes bankrupt.

Answer 2

17. Bank depositors will not lose their deposits in a banking panic if:

correct answer:

B. there is 100% reserve banking.

18. Deposit insurance is a system in which the government guarantees that:

correct answer is:

A. depositors will not lose any money even if their bank goes bankrupt.