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What do you think would happen if all the depositors went to ask for their money at the same time?

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Question

What do you think would happen if all the depositors went to ask for their money at the same time?

Short Answer
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Solution

If all of the depositors come to the bank at the same time to demand or withdraw their money, there will be a lot of difficulty in distributing money to the bank’s depositors because the bank has already spent the majority of the money deposited with it in the form of loans.

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Chapter 3: Money and Credit - Intext Questions [Page 42]

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NCERT Social Science Understanding Economic Development [English] Class 10
Chapter 3 Money and Credit
Intext Questions | Q 1. | Page 42
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