Bank "runs" occur
A) when a large number of depositors speculate on rising interest rates
B) if depositors the shift of funds from bank deposits to mutual funds
C) because of the collapse of bank loan markets
D) none of the above

Question

Quizplus · Accepted Answer

Bank "runs" occur when a large number of depositors withdraw their money from a bank simultaneously due to fears that the bank will become insolvent. None of the options A, B, or C directly describe this scenario.

Bank "Runs" Occur