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Which Statement About Bank Runs Is False

Question 126

Multiple Choice

Which statement about bank runs is false?


A) They may start as a result of a rumor that a bank is in financial trouble.
B) They may start as a result of a rumor that a bank is in financial trouble
C) During bank runs, many banks' depositors try to withdraw their funds because they fear a bank failure.
D) During bank runs, many banks' depositors try to withdraw their funds because they fear a bank failure
E) Bank runs typically happen only to small banks with few financial assets
F) Bank runs typically happen only to small banks with few financial assets.
G) Bank runs often lead to a loss of faith in other banks, causing additional bank runs
H) Bank runs often lead to a loss of faith in other banks, causing additional bank runs.

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