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On 11 December 2011, a rumor was spread via Twitter that the Swedish banks Swedbank and SEB were having "problems". People emptied their accounts, and according to local media there were long lines of people at the automated teller machines.
Why would a series of bank run in Sweden (people rapidly withdrawing large volumes of money from financial institutions) decrease the money supply?
Wouldn't a bank run be simply a move of funds from demand deposit accounts to currency in circulation?
This document contains various important questions and their appropriate answers in the subject field of Economics.
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