Open Market Purchase is used to control money in circulation in banking system. Examine the term “Open Market Purchase” and effects of Open Market Purchase on Monetary Policy 2. ABC Bank is in financial crisis and suddenly people run to the bank and convert their deposits in cash. With this situation, why depositors acted as such? Investigate what will be the aftermath of the massive withdrawals from the bank? Analyze how should government intervene in order to avoid bank run?

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