Multiple Choice
A bank run is said to have occurred when
A) depositors realise that a particular bank is paying higher interest than its competitors and a substantial number of them rush to deposit their money in it.
B) a substantial number of depositors suspect that a bank may go bankrupt and withdraw their deposits.
C) a bank experiences a series of defaults on its loans.
D) a bank converts its loans into deposits.
Correct Answer:

Verified
Correct Answer:
Verified
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