0
Q:
A) The net balance of money a bank has in its chest at the end of the day’s business | B) The ratio of bank’s total deposits and total liabilities |
C) A panic situation when the deposit holders start withdrawing cash from the banks | D) The period in which a bank creates highest credit in the market |
Answer: C) A panic situation when the deposit holders start withdrawing cash from the banks
Explanation:
Explanation:
A bank run occurs when a large number of people withdraw their money from a bank, because they believe the bank may cease to function soon.
A banking panic or bank panic is a financial crisis that occurs when many banks suffer runs at the same time, as people suddenly try to convert their threatened deposits into cash or try to get out of their domestic banking system altogether.