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A Narrow bank is a bank that only holds cash for its depositors -- specifically, in our example from class, a narrow bank would take

A "Narrow bank" is a bank that only holds cash for its depositors -- specifically, in our example from class, a narrow bank would take the 1000 deposits of $1,000 each and simply deposit $1,000,000 in its Federal Reserve account.

1. Would this kind of bank be immune to bank runs and financial crises?

2. Why or why not?

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