A “run on the bank” refers to the situation when most of a bank’s depositors withdraw their deposits from their bank. What does the bank multiplier process tell us will be the outcome of this process? In 1934, the Federal Deposit Insurance Corporation (FDIC) was set up to guarantee bank deposits. Before that time, if a bank failed, its depositors could lose all their savings. Now, the FDIC insures these deposits (up to $250,000). How does this reduce the likelihood of runs on the bank? How does this reduce the impact of runs on the bank?