EBK THE ECONOMICS OF MONEY, BANKING AND
EBK THE ECONOMICS OF MONEY, BANKING AND
4th Edition
ISBN: 8220100668203
Author: Mishkin
Publisher: PEARSON
Question
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Chapter 12, Problem 8Q
To determine

To Explain: The causes behind bank panic.

Concept Introduction

Bank Panic: If for some reason depositors begin to believe that the bank is going to get closed or is likely to default, they in a sudden rush try to withdraw their money from the bank. This leads to a sharp decline in the deposits of the bank due to which they may run out of business.

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