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An Episode When Depositors,spurred by News or Rumours of the Imminent

Question 80

Multiple Choice

An episode when depositors,spurred by news or rumours of the imminent bankruptcy of one or more banks,rush to withdraw their deposits from the banking system is called a(n)


A) open-market withdrawal.
B) open-market sale.
C) banking panic.
D) bank run.
E) reserve requirement crisis.

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