Surely, when people deposit money in bank accounts, they often demand all or nearly all of it

Question:

‘Surely, when people deposit money in bank accounts, they often demand all or nearly all of it out in cash. Isn’t it very dangerous, then, for banks to keep only a small percentage of it in cash or in their operational balances in the Bank of England?’ How would you answer this worry?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

Question Posted: