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The real danger of a bank run is that it can make banks fail even when they are:
ASalaried
BScheduled
CSanctioned
DSolvent
Answer & Solution
Correct answer: D. Solvent
1. Insolvent banks were going to close in any case.
2. The panic spreads beyond them.
3. The danger is that solvent banks fail too.
_Source: OpenStax Principles of Economics 3e, Chapter 28, Monetary Policy and Bank Regulation._
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