Economics 2 - Macroeconomics Essay What are the causes of 'bank runs'? At the centre of any bank's operations is a relationship which at any given time could become a major problem, but for the great majority of the time is not. A bank relies on the fact that although any and all of its' depositors have a right to withdraw that money at a given time, it is very unlikely that a great number of …showed first 75 words of 2075 total…

…showed last 75 words of 2075 total…care in terms of investment, thereby competing for customers by means other than purely via interest rates. References · Lewis, M.K. & Davis, K.T. (1987) Domestic & International Banking; Philip Allan Publishers Ltd · Kennedy, Susan Estabrook (1973) The Banking Crisis of 1933; University Press of Kentucky · Revell, Jack (1975) Solvency and Regulation of Banks; University of Wales Press · Sundararajan, V & Balino, Tomas J.T. (1991) Banking Crises: Cases and Issues; International Monetary Fund · Blanchard, Michael (2000) Macroeconomics; Prentice Hall · Economist CD-ROM (1991-2000)