Explain how a bank run can cause a bank to fail?
What will be an ideal response?
If a bank experiences a bank run, it experiences a liquidity problem because its loans cannot be easily sold off to provide funds to pay off depositors. Without funds to pay off depositors, the bank will not be able to stay in business.
Economics
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If the interest rate on a bond is below the equilibrium interest rate, there is an excess ________ of bonds and the bond price will ________
A) demand; rise B) demand; fall C) supply; rise D) supply; fall
Economics
If a good has an absolute price elasticity of 1, the demand for the good is
A) unit elastic. B) inelastic. C) perfectly elastic. D) elastic.
Economics