what causes a bank run?\ntoo many people try to withdraw their deposits at the same time.\nbanks refuse to…
what causes a bank run?\ntoo many people try to withdraw their deposits at the same time.\nbanks refuse to loan out deposited funds.\nthe federal reserve conducts an inspection of a banks fractional reserve.\ninterest rates fall too quickly.
Answer
Brief Explanations:
A bank run occurs when a large - number of depositors lose confidence in a bank and simultaneously try to withdraw their deposits. Banks operate on a fractional - reserve system, meaning they don't have all deposited funds on hand at once. So, a sudden rush of withdrawals can cause problems. The other options are not the direct cause of a bank run.
Answer:
Too many people try to withdraw their deposits at the same time.