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Two strategies protect against bank runs: the lender of last resort and deposit:
AInsurance
BInspection
CInstruction
DInstitution
Answer & Solution
Correct answer: A. Insurance
1. One provides emergency lending in a panic.
2. The other guarantees depositors' money directly.
3. That guarantee is deposit insurance.
_Source: OpenStax Principles of Economics 3e, Chapter 28, Monetary Policy and Bank Regulation._
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