In a bank run:
A)the bank has a surplus of deposits and must turn customers away.
B)bank customers try to withdraw their deposits.
C)the bank runs out of money to lend to customers.
D)the bank runs out of profitable investments for the funds of its depositors.

Question

Quizplus · Accepted Answer

In a bank run, customers try to withdraw their deposits all at once, creating a panic and potentially causing the bank to run out of money to fulfill all the withdrawal requests. This can lead to the bank failing and possibly triggering a wider financial crisis. Therefore, option B is the correct choice. Option A is incorrect because a surplus of deposits would not cause a bank run. Option C is incorrect because running out of money to lend does not necessarily mean a bank run is occurring. Option D is also incorrect because the profitability of investments is not directly related to a bank run.

In a Bank Run