What causes a bank run?Too many people try to withdraw their deposits at the same time.Banks refuse to loan out deposited funds.The Federal Reserve conducts an inspection of a bank’s fractional reserve.Interest rates fall too quickly.

A bank keeps only a portion of customers’ deposits available as cash and lends out the rest. If many customers try to withdraw their money at once, the bank may not have enough cash to meet all those requests, causing a bank run. Therefore, the correct choice is “Too many people try to withdraw their deposits at the same time.”

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