Multiple Choice
A bus breaks down outside a small bank causing a big crowd.Passing bank customers think the crowd is caused by a queue of depositors withdrawing their money and so take their money out and warn their friends.You are also a depositor at the bank but realize that the run on the bank has been caused by a misconception.Your rational response is to
A) ignore the run since it is based on a misconception
B) withdraw your money also even though there is no risk of the bank failing
C) withdraw your money as there is now a risk of the bank failing
D) put more money in the bank as a show of confidence
E) ignore the run even though the bank is now at risk of failing
Correct Answer:

Verified
Correct Answer:
Verified
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