A bank run occurs when a large number of customers withdraw their money from a bank simultaneously because they lose confidence in the bank's solvency and fear they will lose their deposits if the bank fails.
Which of the following with regard to the term 'bank run' is correct?
Asked in UPSC CDS 2 2016 · Topic: Money & Banking (Commercial Banking: Structure, Functions, and Recent Reforms in India)
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Answer: C. A panic situation when the deposit holders start withdrawing cash from the banks
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