If all of a bank's depositors showed up on one day requesting cash withdrawals of all their deposited funds

Question

Quizplus · Accepted Answer

This scenario is known as a bank run, and in such an event, the bank would likely not have enough reserves to honor all withdrawal requests. Banks keep only a fraction of deposits as reserves, and the rest is loaned out to other customers. If too many depositors withdraw their funds at once, the bank will not have enough reserves to meet this demand and will likely fail.

If All of a Bank's Depositors Showed Up on One