Which Statement Best Explains Whether Bank Runs Are a Problem

Multiple Choice

Which statement best explains whether bank runs are a problem for the economy?

A) They are not a problem because bank runs will affect neither the money supply nor the money multiplier.
B) Bank runs are only a problem for insolvent banks.
C) They are a problem, but they can be neither prevented nor stopped by a central bank.
D) Bank runs are a problem because bank failures may spread to healthy banks.