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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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