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9. A bank run is a phenomenon in which many of a bank's depositors try to withdraw their funds because of fears of a bank
9. A bank run is a phenomenon in which many of a bank's depositors try to withdraw their funds because of fears of a bank failure. Which of the following is NOT correct regarding bank runs? a. Bank runs are often contagious and self-fulfilling. b. Deposit insurance by FDIC can promote confidence among depositors and prevent a bank run. c. Capital requirement can help prevent bank runs by requiring that the banks hold equal amount of assets as the value of bank deposits. d. The Fed can help reduce the risk of bank runs by reserve requirement and discount window
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