Assume the reserve ratio to be 0.17 and the initial deposit to be $1,000. What is the money supply? (1 mark) Bank runs. (1) How default in loans causes bank runs? (1 mark) (2) How liquidity issue causes bank runs? (1 mark) (3) What can government do to reduce the risk of bank runs? (1 mark) Assume the reserve ratio to be 0.17 and the initial deposit to be $1,000. What is the money supply? (1 mark) Bank runs. (1) How default in loans causes bank runs? (1 mark) (2) How liquidity issue causes bank runs? (1 mark) (3) What can government do to reduce the risk of bank runs? (1 mark)