Which of the following about bank runs is false?
A) They may start as a result of a rumor that a bank is in financial trouble.
B) Many banks' depositors try to withdraw their funds because they fear a bank failure.
C) Bank runs typically happen only to small banks with few financial assets.
D) Bank runs often lead to a loss of faith in other banks, causing additional bank runs.
Correct Answer:
Verified
Q83: Use the following to answer questions:
Q84: Banks are illiquid because:
A) their deposits are
Q85: Reserve requirements:
A) set the maximum amount of
Q86: A major problem with bank runs is
Q87: Among the liabilities of banks are:
A) customers'
Q89: The reserve ratio is defined as the
Q90: Use the following to answer questions:
Q91: A bank run can break a bank
Q92: Among the assets of a bank are:
A)
Q93: The reserve ratio is the fraction of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents