A bank run is a panic situation where many depositors rush simultaneously to withdraw their deposit money in the form of cash, often stemming from rumors or concerns about the bank's solvency or ability to meet its obligations. This can lead to a spiral of withdrawals and further deterioration of the bank's financial position.

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What Is a Bank Run

Question 58

Multiple Choice

What is a bank run?

A) A situation where a commercial bank is holding zero reserves.
B) A panic situation where many depositors rush simultaneously to withdraw their deposit money in the form of cash.
C) A situation where all commercial banks in the system are simultaneously short of reserves.
D) The collapse of a non-commercial bank as a result of non-payment of loans.
E) The collapse of a commercial banks as a result of the devaluation of their assets.

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