Which of the following is TRUE about bank runs? FDIC insurance makes bank runs more likely because people don't worry about bank failure and put their money in bad banks. Bank runs can bankrupt even healthy banks because banks don't keep all the money people deposit. They invest and make loans with that money. This means they don't have money to pay depositors if many ask for their money at once. Bank runs only affect banks that are losing money. The run on the bank makes the bank go out of business faster but those banks would have failed anyway..

1. Which of the following is TRUE about bank runs? FDIC insurance makes bank runs more likely
because people don't worry about bank failure and put their money in bad banks. Bank runs can
bankrupt even healthy banks because banks don't keep all the money people deposit. They invest
and make loans with that money. This means they don't have money to pay depositors if many
ask for their money at once. Bank runs only affect banks that are losing money. The run on the
bank makes the bank go out of business faster but those banks would have failed anyway.