Question
When a bank fails, it can lead to a loss of trust in other banks, causing customers to withdraw their funds in them as well,
When a bank fails, it can lead to a loss of trust in other banks, causing customers to withdraw their funds in them as well, causing further distrust. This can lead to a domino effect, where other banks also suffer from withdrawals, leading to an ever-widening economic crisis. Moreover, just as a domino effect can be difficult to stoponce it has started, a banking crisis can also be difficult and costly to contain once it has begun. The government should regulate and monitor banks to insure they are not lined up like dominoes where one of them failing will lead to many of them also failing.
MAIN CONCLUSION: ANALOGY: ANALYSIS:
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