<< Chapter < Page | Chapter >> Page > |
Card 11 / 15:
Bank runs are often described as “self-fulfilling prophecies.” Why is this phrase appropriate to bank runs?
The fear and uncertainty created by the suggestion that a bank might fail can lead depositors to withdraw their money. If many depositors do this at the same time, the bank may not be able to meet their demands and will, indeed, fail.
Previous Card | ← Previous Card Button |
Next Card | → Next Card Button |
Flip Card | ↑ / ↓ / Return / Space |
Notification Switch
Would you like to follow the 'Macroeconomics' conversation and receive update notifications?