5. Banks have sometimes been subject to bank runs, most notably in the early 1930s. To avert...
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5. Banks have sometimes been subject to bank runs, most notably in the early 1930s. To avert this danger, depositors are now protected by deposit insurance, bank owners face capital requirements that reduce the incentive to make overly risky loans with depositors’ funds, and banks must satisfy reserve requirements.
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Essentials Of Economics
ISBN: 9781429218290
2nd Edition
Authors: Paul Krugman, Robin Wells, Kathryn Graddy
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