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You have to pull out cash from the bank for a bank run to occur. Can't you buy gold or some other cash substitute instead? Could be even more difficult to dete
by internet_user 7y ago
You have to pull out cash from the bank for a bank run to occur. Can't you buy gold or some other cash substitute instead?
Could be even more difficult to detect than abnormal spike in cash withdrawals via ATMs.
- milesvp 7y agoSpending money is taking money out of your bank account. Any event where more money leaves a bank than they have reserves to cover it is a run on the bank. I think what you may be elluding to is that digital transfer of funds makes the effects of a bank run different than than when cash is involved, since real money in hand cash is much more limited than a bank’s total reserves.