Even a bank in good financial health can fail if there is a run on the bank.

Name: Even a bank in good financial health can fail if there is a run on the bank.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A run on the bank refers to a situation where a large number of customers of a bank rush to withdraw their deposits simultaneously, which can lead to a shortage of cash reserves in the bank. This sudden lack of liquidity can lead to the bank failing, even if it is otherwise financially healthy.

Even a Bank in Good Financial Health Can Fail If