Multiple Choice
A bank run is an episode in which
A) depositors,spurred by news or rumours of the possible bankruptcy of multiple banks,rush to withdraw deposits from the banking system.
B) depositors,spurred by news or rumours of the possible bankruptcy of a particular bank,rush to withdraw deposits from that bank.
C) commercial banks,concerned about high interest rates,rush to borrow from the overnight market.
D) depositors,afraid of increasing interest rates,attempt to engage in borrowing from the Bank of Canada.
E) the Bank of Canada,concerned about unusually rapid increases in the money supply,refuses to make loans to commercial banks.
Correct Answer:

Verified
Correct Answer:
Verified
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