Which of the following best describes how the Federal Reserve Bank helps
banks during a bank run?
O
A The Federal Reserve Bank regulates exchanges to prevent the
demand for withdrawals from rising above the required reserve
ratio
O
B. The Federal Reserve Bank acts as an insurance company that
pays customers if their bank fails.
O
C. The Federal Reserve Bank has the power to take over a private
bank if customers demand too many withdrawals.
D. The Federal Reserve Bank can provide a short-term loan to banks
to prevent them from running out of money.
