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Bank run (bank panic) |
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Bank run (bank panic)A series of unexpected cash withdrawals caused by a sudden decline in depositor confidence or fear that the bank will be closed by the chartering agency, i.e. many depositors withfraw cash almost simultaneously. Since the cash reserve a bank keeps on hand is only a small fraction of its depoits, a large number of withdrawals in a short period of time can deplete available cash and force the bank to close and possibly go out of business.Bank run (bank panic) Similar MatchesPanic buying or sellingPanic buying or sellingRapid trading of trading or trading in high trading in anticipation of sharply rising or falling prices, usually after unexpected news is released. |
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