6. A bank run occurs when depositors lose confidence in a bank and make sudden, large withdrawals....
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6. A bank run occurs when depositors lose confidence in a bank and make sudden, large withdrawals. A run can cause a previously healthy bank to fail. It can result from self-fulfilling expectations: people withdraw money because they expect withdrawals by others. LOP8
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Macroeconomics And The Financial System
ISBN: 9781429253673
1st Edition
Authors: N. Gregory Mankiw, Laurence Ball
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