answersLogoWhite

0

What is a run on a bank?

Updated: 4/28/2022
User Avatar

Wiki User

12y ago

Best Answer

A "run" is when panic sets in due to depositors' fear they will not be able to get their money back from the bank. So many depositors ask for their funds immediately that the bank runs out of cash to give them. This, of course, only makes things worse as the cycle of fear and withdrawals spins downward until the bank is forced to shut its doors.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is a run on a bank?
Write your answer...
Submit
Still have questions?
magnify glass
imp