Question

In a fractional reserve banking system loading...​, what is the difference between a​ "bank run" and a​ "bank panic?"

a. a bank run involves one​ bank; a bank panic involves many banks.
b. a bank run is a local​ issue; a bank panic is a national issue.
c. a bank run involves many​ banks; a bank panic involves one bank.
d. a bank run is a u.s.​ issue; a bank panic is an international issue.

Answer 1

In a fractional reserve banking system loading what is the difference between a​ "bank run" and a​ "bank panic?" A bank run involves one​ bank; a bank panic involves many banks.

A bank run is when there are a lot of people withdrawing money from a bank at once to confuse the system. A bank panic is a financial crisis done with many banks suffering at the same time.