Which of the following describe a common factor behind the occurrence of bank runs? Check all that apply. Even a healthy bank does not keep reserves on hand to cover all of its checking account liabilities. Financial institutions have little concern regarding their soundness. Rumors that a bank is in financial trouble spread easily. Which of the following are reasons why bank panics were largely eliminated after 1933? Check all that apply. State-chartered banks are freer from the Fed's regulations. The Federal Reserve ("the Fed") stands ready to inject reserves into the system more quickly in a crisis. The Fed and other government agencies continuously monitor the financial condition of banks.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Solve both as they are subparts Give explanation of the correct option and explanation of incorrect options will like solve both please.
8. Banking panics and regulations
Which of the following describe a common factor behind the occurrence of bank runs? Check all that apply.
Even a healthy bank does not keep reserves on hand to cover all of its checking account liabilities.
Financial institutions have little concern regarding their soundness.
Rumors that a bank is in financial trouble spread easily.
Which of the following are reasons why bank panics were largely eliminated after 1933? Check all that apply.
State-chartered banks are freer from the Fed's regulations.
The Federal Reserve ("the Fed") stands ready to inject reserves into the system more quickly in a crisis.
The Fed and other government agencies continuously monitor the financial condition of banks.
Transcribed Image Text:8. Banking panics and regulations Which of the following describe a common factor behind the occurrence of bank runs? Check all that apply. Even a healthy bank does not keep reserves on hand to cover all of its checking account liabilities. Financial institutions have little concern regarding their soundness. Rumors that a bank is in financial trouble spread easily. Which of the following are reasons why bank panics were largely eliminated after 1933? Check all that apply. State-chartered banks are freer from the Fed's regulations. The Federal Reserve ("the Fed") stands ready to inject reserves into the system more quickly in a crisis. The Fed and other government agencies continuously monitor the financial condition of banks.
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