A bank run involves a large flow of money
A)into bank depositors' accounts.
B)into checking and savings accounts.
C)out of depositors' accounts.
D)out of individuals' cash reserves into money market funds.

Question

Quizplus · Accepted Answer

A bank run involves depositors rushing to withdraw their funds from a bank, leading to a large flow of money out of their accounts and potentially leading to the bank's insolvency. Therefore, option C is the best choice. Options A, B, and D are incorrect as they involve a flow of money into accounts or other financial products which is not relevant to a bank run.

A Bank Run Involves a Large Flow of Money