Rumors of a Bank Failing, Even If Not True, Can

Multiple Choice

Rumors of a bank failing, even if not true, can become a self-fulfilling prophecy because:

A) customers will not want to obtain loans from this bank.
B) equity investors will not be able to sell the bank's stock.
C) regulators will scrutinize the bank heavily looking for something wrong.
D) depositors will rush to the bank to withdraw their deposits and the bank under normal situations would not have sufficient liquid assets on hand.