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Which of the following is NOT a way that the Fed prevents runs from happening? Private banks can choose to hold their reserves at regional
Which of the following is NOT a way that the Fed prevents runs from happening?
- Private banks can choose to "hold" their reserves at regional Federal Reserve banks.
- Private banks rely on the Federal Government's oversightof theFederal Reserve's monetary policies.
- The Fed ensures that these private banks have access to currency needed for depositors who wish to withdraw cash.
- Ifreserves run low, the Fed will loan money to the private banks.
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