A bank run involves:
A)Illegal activities on the part of the bank's officers
B)A bank being forced into bankruptcy
C)A large number of depositors withdrawing their funds during a short time span
D)A bank's return on assets being below the acceptable level

Question

Quizplus · Accepted Answer

A bank run occurs when a large number of depositors withdraw their funds from a bank within a short period of time, usually due to concerns about the bank's solvency. This can quickly deplete the bank's reserves and potentially lead to bankruptcy. Bank runs can have ripple effects on the broader financial system and can be a major contributor to financial crises. Illegal activities, low return on assets, and bankruptcy may be factors that lead to a bank run, but they are not the defining characteristic of a bank run.

A Bank Run Involves