Refer to the information provided in Scenario 10.1 below to answer the questions that follow.
SCENARIO 10.1: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
-Refer to the Economics in Practice on p. 193: The Economics in Practice feature discusses three examples of many people who have claims on a bank presenting those claims at the same time. This describes a situation known as

Question

Refer to the information provided in Scenario 10.1 below to answer the questions that follow.
SCENARIO 10.1: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up. 
-Refer to the Economics in Practice on p. 193: The Economics in Practice feature discusses three examples of many people who have claims on a bank presenting those claims at the same time. This describes a situation known as

Quizplus · Accepted Answer

The scenario shows the potential impact of a bank run, where all depositors try to withdraw their funds at the same time, leading to a depletion of the bank's reserves and inability to fulfill all withdrawal requests.

Refer to the Information Provided in Scenario 10