Question

A traditional bank run is a run on ________________ and a modern day bank run occurs when _____________.

		depository banks, money market managers withhold lending to other financial institutions
		investment banks, depositors withdraw money from checking accounts
		investment banks, Federal Reserve raises interest rates
		depository institutions, Federal Reserve raises interest rates

Answer 1

Option a

Traditional bank run could occur when a panic amongst depositors would cause them to withdraw funds  at the same time ,whereas modern day bank run could occur even when market managers refuses to lend funds to institutions creating a panic in the market.