Answer to Question #190278 in Economics for Bri

Question #190278

Why can’t all depositors in a bank withdraw all of their money at once?


1
Expert's answer
2021-05-07T07:05:47-0400

The money deposited in the bank by everyone are either invested or given as loans. So, if everyone tries to take their money back at the same time the bank will go bankrupt because it doesn't have so much reserve cash.


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