If people speculate that a run on one bank will cause a run on all banks in the financial system,and this speculation proves accurate,then the financial system would experience what is known as a

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A run on one bank can cause panic among depositors of other banks, leading them to withdraw their deposits as well. This can put pressure on the entire banking system and result in a bank panic. This is a situation where depositors lose confidence in the banking system and take their money out of banks, potentially causing a domino effect leading to the collapse of multiple financial institutions.

If People Speculate That a Run on One Bank Will