Bank runs are only a concern under a fractional-reserve banking system.

Name: Bank runs are only a concern under a fractional-reserve banking system.
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Question

​Bank runs are only a concern under a fractional-reserve banking system.

Quizplus · Accepted Answer

Bank runs primarily occur in a fractional-reserve banking system, where banks hold only a fraction of their depositors' money in reserve, lending out the majority. If many depositors simultaneously demand their money back, the bank may not have enough liquid assets to meet these demands, leading to a bank run.

​Bank Runs Are Only a Concern Under a Fractional-Reserve Banking

Bank Runs Are Only a Concern Under a Fractional-Reserve Banking