Of course I am being simplistic and a run can occur precisely because there is more than one bank... But on the international transfer thing... you selling USD and buying EUR doesn't result in the creation or…
That is irrational behaviour. Depositors should spread their cash across multiple banks. This is very basic risk management.
Not true. Imagine there was only ONE bank.
Of course I am being simplistic and a run can occur precisely because there is more than one bank... But on the international transfer thing... you selling USD and buying EUR doesn't result in the creation or…
That is irrational behaviour. Depositors should spread their cash across multiple banks. This is very basic risk management.
Not true. Imagine there was only ONE bank.