The Sequence of a Bank Run Is

question 38

Multiple Choice

The sequence of a bank run is:

• A)fear of a run, depositors withdraw, banks sell assets, capital falls below zero.
• B)depositors withdraw, banks sell assets, fear of a run, capital falls below zero.
• C)capital falls below zero, fear of a run, depositors withdraw, banks sell assets.
• D)banks sell assets, capital falls below zero, fear of a run, depositors withdraw.

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Definitions:

Reciprocity Norm

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