When the Bank of Canada steps in as the lender of last resort to prevent a...

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When the Bank of Canada steps in as the lender of last resort to prevent a bank panic, does this constitute a "bail out of the banks"? Briefly explain. A. This does constitute a "bail out of the banks." The Bank of Canada offers to make loans to banks so that they can meet their depositors' desires to withdraw funds from their accounts. B. This does constitute a "bail out of the banks." The Bank of Canada uses taxpayer funds to pay bank debts and take partial ownership in a bank. C. This does not constitute a "bail out of the banks." The Bank of Canada does not use taxpayer funds to pay bank debts and take partial ownership in a bank. Instead, the Bank of Canada offers to make loans to banks so that they can meet their depositors' desires to withdraw funds from their accounts. D. This does not constitute a "bail out of the banks." The Bank of Canada uses taxpayer funds to pay bank debts and take partial ownership in a bank. When the Bank of Canada steps in as the lender of last resort to prevent a bank panic, does this constitute a "bail out of the banks"? Briefly explain. A. This does constitute a "bail out of the banks." The Bank of Canada offers to make loans to banks so that they can meet their depositors' desires to withdraw funds from their accounts. B. This does constitute a "bail out of the banks." The Bank of Canada uses taxpayer funds to pay bank debts and take partial ownership in a bank. C. This does not constitute a "bail out of the banks." The Bank of Canada does not use taxpayer funds to pay bank debts and take partial ownership in a bank. Instead, the Bank of Canada offers to make loans to banks so that they can meet their depositors' desires to withdraw funds from their accounts. D. This does not constitute a "bail out of the banks." The Bank of Canada uses taxpayer funds to pay bank debts and take partial ownership in a bank.

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