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An Episode When Depositors,spurred by News or Rumours of the Imminent

Question 12

Multiple Choice

An episode when depositors,spurred by news or rumours of the imminent bankruptcy of a particular bank,rush to withdraw their deposits from that bank is called a(n)


A) open-market withdrawal.
B) open-market sale.
C) banking panic.
D) bank run.
E) reserve requirement crisis.

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