what do you think whould happen if all the deposites went to ask for their money at the same time?
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Answered by
62
Explanation:
If all the depositors would go to banks and withdraw their money at the same time, then there will be a huge cash crisis in the banks as they will run our of money. They will not be able to give loan to markets and several companies. ... Bank cash reserve ratio will also decrease drastically.
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2
The main result will be that the Country's economy will fall vigorously as banks only give loan to common people. So if there won't be any money then how will they give loans to needies and new talents such as the story of Dhirubhai Ambani, and then ultimately the government will also be unable to take tax from banks like banks take interests and then banks will itself be in crisis and will have shut-down action as government and investors will attain (claim) their money back leading to the shut-off of banks and jointly many businesses dependent on them thus leading to Savagery of whole country.
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