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  • Question
  • Which one of the following with regard to the term ?bank run? is correct?


  • Options
  • A. The net balance of money a bank has in its chest at the end of the day?s business
  • B. The ratio of bank?s total deposits and total liabilities
  • C. A panic situation when the deposit holders start withdrawing cash from the banks
  • D. The period in which a bank creates highest credit in the market

  • Correct Answer
  • A panic situation when the deposit holders start withdrawing cash from the banks 

    Explanation

    A bank run occurs when a large number of people withdraw their money from a bank, because they believe the bank may cease to function soon.

    A banking panic or bank panic is a financial crisis that occurs when many banks suffer runs at the same time, as people suddenly try to convert their threatened deposits into cash or try to get out of their domestic banking system altogether.

  • Tags: Bank Exams

    More questions

    • 1. Sanchi Stupa is located near

    • Options
    • A. Gaya
    • B. Bhopal
    • C. Varanasi
    • D. Bijapur
    • Discuss
    • 2. Who invented Gunpowder?

    • Options
    • A. G. Ferdinand Von Zeppelin
    • B. Sir Frank Whittle
    • C. Roger Bacon
    • D. Leo H Baekeland
    • Discuss
    • 3. Jeev Milkha Singh is associated with which sports?

    • Options
    • A. Volleyball
    • B. Golf
    • C. Athletics
    • D. Hockey
    • Discuss
    • 4. The largest dry rock in India is situated at

    • Options
    • A. Mumbai
    • B. Cochin
    • C. Marmugao
    • D. Kolkata
    • Discuss
    • 5. The landmass of which of the following continents is the least?


    • Options
    • A. Africa
    • B. Asia
    • C. Australia
    • D. Europe
    • Discuss
    • 6. 'Vijay Stambha' is situated in

    • Options
    • A. Jaipur
    • B. Agra
    • C. Delhi
    • D. Chittor
    • Discuss
    • 7. Balloons are filled with

    • Options
    • A. nitrogen
    • B. helium
    • C. oxygen
    • D. argon
    • Discuss
    • 8. Plants hormone that induces cell division is

    • Options
    • A. auxins
    • B. gibberellins
    • C. kinins
    • D. domins
    • Discuss
    • 9. The Vedic deity Indra was the Goddess of


    • Options
    • A. wind
    • B. eternity
    • C. rain and thunder
    • D. fire
    • Discuss
    • 10. The minimum age required to become a member of Rajya Sabha is


    • Options
    • A. 21 years
    • B. 25 years
    • C. 30 years
    • D. 35 years
    • Discuss


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