A bank run is:
A) the situation that arises from fear that the bank is in danger of running out of money.
B) when all depositors from a single bank demand to withdraw all deposits at once.
C) when a bank's reserves are not enough to satisfy all withdrawal demands.
D) All of these are true.

Question

Quizplus · Accepted Answer

All of these options are correct. A bank run typically occurs when depositors are worried that their bank may not be able to fulfill all of the withdrawal requests they may receive. In some cases, this fear can become self-fulfilling, leading to a run on the bank where many depositors ask for all of their money back at once. If a bank's reserves are too low to satisfy all of these withdrawal requests, it may be forced to close or seek assistance from the government or other sources.

A Bank Run Is