How does the existence of the fdic help prevent this problem

Reference no: EM131139863

a. What is a bank run?

b. Why might one occur?

c. If the Fed took no action in the face of a bank run, what would be the effects on the money supply and on the money multiplier?

d. How does the existence of the FDIC help prevent this problem?

Reference no: EM131139863

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