Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

3. what does it mean to have a “run on the bank”? it is when a bank ove…

Question

  1. what does it mean to have a “run on the bank”?

it is when a bank over - invests in railroads.
it is when several banks are robbed at the same time.
it is when all of the depositors attempt to take their money out of the bank at the same time.
it is when a bank owner illegally takes profits from the bank.

Explanation:

Brief Explanations

A bank run occurs when a large number of depositors lose confidence in a bank and simultaneously withdraw their funds. This mass withdrawal can cause the bank to run out of liquid assets and potentially fail. The other options describe different financial irregularities or events that are not the definition of a bank run.

Answer:

It is when all of the depositors attempt to take their money out of the bank at the same time.