Question

bank run is​ ____________.A.an extraordinarily large volume of withdrawals driven by a concern that a bank will run out of liquid assets with which to pay withdrawals.B.an unexpected attempt of one bank to initiate a hostile takeover of​ another, usually​ smaller, bank.C.a sudden desire on the part of a​ bank's shareholders to sell their bank stock.D.an extraordinarily large volume of withdrawals from all b

Answer 1

Option A

Step-by-step explanation:

In simple words, Bank runs refers to the scenario when a significant amount of individuals begin to make bank withdrawals since they are afraid the organizations will run out of liquidity. Usually a run on the banks is the product of confusion instead of a true bankruptcy.

Bank run caused by panic that drives a bank into real bankruptcy provides a traditional example of a prediction that fulfills itself. The institution does defaults risk, as customers are continuing to withdraw money. So what starts out as fear will ultimately turn into some kind of true fallback situation.