A bank run can happen when the likelihood of one depositor asking for his money is not influenced by other depositors asking for their money.

Question

Quizplus · Accepted Answer

A bank run happens when many depositors make withdrawals at the same time, causing the bank to run out of funds. The likelihood of one depositor asking for their money is influenced by the behavior of other depositors, as news of withdrawals or concerns about the bank's solvency can spread quickly and cause a panic.

A Bank Run Can Happen When the Likelihood of One