What is a bank run


Response to the following questions:

1. What are the several components of a DI's liquidity plan? How can the plan help a DI reduce liquidity shortages?

2. What is a bank run? What are some possible withdrawal shocks that could initiate a bank run? What feature of the demand deposit contract provides deposit withdrawal momentum that can result in a bank run?

If possible, please give examples to better understand your response.

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Financial Accounting: What is a bank run
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