What happens if all of the depositors of the bank suddenly decide that they want their money

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What happens if all of the depositors of the bank suddenly decide that they want their money back? Distinguish what would happen with and without deposit insurance.

Can we have a situation in which depositors will line up outside the bank to get their deposits back?

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3E Economics

ISBN: 9781292411019

3rd Global Edition

Authors: Daron Acemoglu, David Laibson , John List

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Question Posted: Nov 16, 2024 05:00 AM

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What happens if all of the depositors of the bank suddenly decide that they want their money back? Distinguish what would happen with and without deposit insurance. Can we have a situation in which...
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What happens if all of the depositors of the bank suddenly decide that they want their money

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3E Economics

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