A bank run can happen when the likelihood of one depositor asking for his money is influenced by other depositors asking for their money.

Question

Quizplus · Accepted Answer

A bank run can be triggered by a panic or rumor that shakes the confidence of depositors, causing them to rush to withdraw their money. As more and more people start to withdraw their funds, it can create a domino effect where others become concerned and also request their money, leading to a depletion of the bank's reserves and potentially causing it to fail. Therefore, the actions of one depositor can influence the actions of others in a bank run.

A Bank Run Can Happen When the Likelihood of One