What matters most during a bank run is:
A) the number of loans outstanding.
B) the solvency of the bank.
C) the liquidity of the bank.
D) the size of the bank's assets.

Question

Quizplus · Accepted Answer

During a bank run, the most critical factor is the liquidity of the bank, which refers to its ability to meet withdrawal demands by converting assets into cash without significant loss. Solvency, the size of the bank's assets, and the number of loans outstanding are important but secondary to immediate liquidity needs in a run scenario.

What Matters Most During a Bank Run Is