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  • 10-06-2021
  • Business
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What are the consequences of bank failures?

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fatima45988
fatima45988 fatima45988
  • 10-06-2021

Answer:

When a bank fails, it may try to borrow money from other solvent banks in order to pay its depositors. If the failing bank cannot pay its depositors, a bank panic might ensue in which depositors run on the bank in an attempt to get their money back.

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