Which of the following situations often results in a banking crisis?
A) when investors withdraw funds from financial institutions
B) when exchange rates fluctuate dramatically
C) when governments borrow excessively from banks
D) when a nation's currency rapidly depreciates

Question

Quizplus · Accepted Answer

A banking crisis often occurs when investors withdraw funds from financial institutions, leading to a liquidity shortage and potential bank failures.

Which of the Following Situations Often Results in a Banking