When a bank run spreads from one bank to another, it is said to be

Question

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When a bank run spreads from one bank to another, it is referred to as contagion, where fear and panic among depositors spread from one institution to another leading to a systemic crisis in the banking system. This can result in a loss of confidence in banks and the overall financial system, causing a chain reaction of financial instability. The other options such as B, C, and D may be outcomes of a contagion but do not fully capture the concept of contagion itself.

When a Bank Run Spreads from One Bank to Another