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I this case the bank is making a bet that the loanees, and depositors won't all ask withdrawals at the same point of time. If they all did, it becomes a run on
by billfruit 4y ago
I this case the bank is making a bet that the loanees, and depositors won't all ask withdrawals at the same point of time. If they all did, it becomes a run on the bank and it will fail.