Question

A ___ panic or run is highly unlikely if reserves and lending policies are prudent.

Answer 1

A bank panic or run is highly unlikely if reserves and lending policies are prudent.

Step-by-step explanation:

A bank panic or run is highly unlikely if reserves and lending policies are prudent. In times of economic uncertainty, banks may worry that borrowers will lose the ability to repay their loans, leading to a potential panic. However, if banks maintain sufficient reserves and follow responsible lending policies, the risk of a panic or run is greatly reduced.