occurs when in a fractional reserve banking system where banks normally only keep a small proportio...........

Economic Affairs Types of Banks and Banking

_____________occurs when in a fractional-reserve banking system (where banks normally only keep a small proportion of their assets as cash), a large number of customers withdraw cash from deposit accounts with a financial institution at the same time because they believe that the financial institution is, or might become, insolvent; and keep the cash or transfer it into other assets, such as government bonds, precious metals or stones.

Debt trap

Bank run

Capital flight

None of the above

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Explanation:

A bank run (also known as a run on the bank) occurs when in a fractional-reserve banking system (where banks normally only keep a small proportion of their assets as cash), a large number of customers withdraw cash from deposit accounts with a financial institution at the same time because they believe that the financial institution is, or might become, insolvent; and keep the cash or transfer it into other assets, such as government bonds, precious metals or stones. When they transfer funds to another institution it may be characterised as a capital flight.