Question

Part 1 : The Canada Deposit Insurance Corporation

Part 2
A. short circuits runs on banks and bank panics by providing protection for the bank.
B. Uses two primary methods to handle a failed bank.
C. will purchase banks in trouble and take over their operations.
D. guarantees depositors money up to​ $0.90 on each dollar.

Answer 1

The Canada Deposit Insurance Corporation (CDIC) provides protection for banks by offering deposit insurance and guarantees depositors' money up to $250,000 per account. It uses two primary methods to handle a failed bank - purchasing banks in trouble and taking over their operations, or providing financial assistance to the bank.

Step-by-step explanation:

The subject of this question is Business and it is at a College level.

The Canada Deposit Insurance Corporation (CDIC) provides protection for banks by offering deposit insurance. This means that depositors in a bank do not lose their money, even if the bank goes bankrupt. The CDIC guarantees depositors' money up to $250,000 per account, giving them assurance and preventing bank panics.

To handle a failed bank, the CDIC uses two primary methods. First, it may purchase banks in trouble and take over their operations to ensure stability and protect depositors' funds. Second, it may provide financial assistance to the bank to help it recover and maintain its operations.