What do you think would happen if all the depositors went to ask for their money at the same time??
Answers
Answered by
7
They would not be able to get their entire amont of money at the same time as bank is allowed to keep a specific amount of money which is fixed by the govt
Answered by
11
Hey mate!!!
Here's your answer...
It will lead to a complete collapse of the financial system. A situation where all depositors or most of the depositors want to withdraw their deposits from the bank at the same time would lead to a bank run. ... It arises mainly due to rumours that the bank may become insolvent and default on payments.
Hope this will help you...
Plz mark it as Brainliest...
Here's your answer...
It will lead to a complete collapse of the financial system. A situation where all depositors or most of the depositors want to withdraw their deposits from the bank at the same time would lead to a bank run. ... It arises mainly due to rumours that the bank may become insolvent and default on payments.
Hope this will help you...
Plz mark it as Brainliest...
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