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cloveb cloveb
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7 years ago Edited: 7 years ago, cloveb
What is the fundamental reason why depository institutions are subjected to bank run risk?

A. DIs typically have high leverage.
B. DIs typically take excessive risks.
C. Deposit contract typically implies a ‘first come, first served’ principle.
D. Depositors are typically paid based on the value of the bank and their shares in the total deposits.
E. None of the above.
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bolbolbolbol
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