Question

In today’s banking industry, if a bank were to experience a bank run and close its doors, a depositor can still recover their deposits. this is in part due to which piece of legislation? responses the first bank of the united states of 1791 the first bank of the united states of 1791 the federal reserve act of 1913 the federal reserve act of 1913 the banking act of 1933 the banking act of 1933 the national banking act of 1963

Answer 1

Depositors can still recover their deposits if a bank experiences a bank run and closes its doors due to deposit insurance.

Step-by-step explanation:

A bank run occurs when there are rumors that a bank is at financial risk of having negative net worth. If a bank experiences a bank run and closes its doors, depositors can still recover their deposits due to deposit insurance. In the United States, the Federal Deposit Insurance Corporation (FDIC) collects deposit insurance premiums from banks and guarantees deposits up to $250,000. This ensures that even if a bank has negative net worth, depositors will be protected.