if people speculate that a run on one bank will cause a run on all banks in the financial system, and this…

if people speculate that a run on one bank will cause a run on all banks in the financial system, and this speculation proves accurate, then the financial system would experience what is known as a\n\na. commodity crisis.\n\nb. securitization meltdown.\n\nc. institutional death spiral.\n\nd. bank panic.

if people speculate that a run on one bank will cause a run on all banks in the financial system, and this speculation proves accurate, then the financial system would experience what is known as a\n\na. commodity crisis.\n\nb. securitization meltdown.\n\nc. institutional death spiral.\n\nd. bank panic.

Answer

Brief Explanations:

A bank panic occurs when multiple banks face runs (mass withdrawals) due to the fear that a run on one bank will spread to others. A commodity crisis relates to commodities (not banks), securitization meltdown is about securitized assets, and institutional death spiral is not the term for widespread bank runs. So the correct option is D.

Answer:

D. bank panic.