Question

A bank run is​ ____________.

a. an extraordinarily large volume of withdrawals from all banks driven by a concern that inflationary forces are poised to diminish the purchasing power of money.
b. an unexpected attempt of one bank to initiate a hostile takeover of​ another, usually​ smaller, bank.
c. an extraordinarily large volume of withdrawals driven by a concern that a bank will run out of liquid assets with which to pay withdrawals.
d. a sudden desire on the part of a​ bank's shareholders to sell their bank stock.

Answer 1

Answer c.

A bank run is “an extraordinarily large volume of withdrawals driven by a concern that a bank will run out of liquid assets with which to pay withdrawals”.

It is a financial crisis or panic that occurs when other banks suffer the same at the same time.