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A Bus Breaks Down Outside a Small Bank Causing a Big

Question 3

Multiple Choice

A bus breaks down outside a small bank causing a big crowd.Passing bank customers think the crowd is caused by a queue of depositors withdrawing their money and so take their money out and warn their friends.You are also a depositor at the bank but realize that the run on the bank has been caused by a misconception.Your rational response is to


A) ignore the run since it is based on a misconception
B) withdraw your money also even though there is no risk of the bank failing
C) withdraw your money as there is now a risk of the bank failing
D) put more money in the bank as a show of confidence
E) ignore the run even though the bank is now at risk of failing

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