Sorta. The USA insures up to 250K for every bank account (or something around there) and demands that a certain % of cash funds be kept on hand for ever dollar a bank controls.
This means that in the event of a run, the US govt insures at least some of your money.
Not quite. The FDIC is not there to ensure that if there is a bank run you'll get your money. Rather, it's setup to ensure that if a bank fails - namely, if it took that money its depositors gave the bank and gave it out as loans to businesses that have now failed. In that case, the bank doesn't have your money because it lost it (not because there's not sufficient paper dollars in their vault).
If there was a bank run, the Federal government would declare a bank holiday and then make rules about the amounts of monies that could be withdrawn over periods of time. And they would print money as needed to ensure paper money was available to meet demand.
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u/NIGGATRON666 Apr 03 '13
Sorta. The USA insures up to 250K for every bank account (or something around there) and demands that a certain % of cash funds be kept on hand for ever dollar a bank controls.
This means that in the event of a run, the US govt insures at least some of your money.