Watch the bank run scene in the classic film Its a Wonderful Life, at www.youtube.com/watch?v=OQEWVDZme4A. To provide

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Watch the bank run scene in the classic film It’s a Wonderful Life, at www.youtube.com/watch?v=OQEWVDZme4A. To provide some background, during the Great Depression, the main character, George Bailey, runs a “building and loan,” a financial institution similar to a bank but that specializes in loans to people buying homes. As the scene starts, George and his new wife, Mary, are leaving town for their honeymoon. It turns out that she is carrying $2,000 in cash for their honeymoon. Write a summary of what is happening in this scene, being sure to use the concepts of bank balance sheets and bank reserves.

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Economics

ISBN: 978-0134738321

7th edition

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

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