Which of the following facts about a bank make a bank run possible? 

A bank ‘run’ occurs when a large number of customers of a bank withdraw their deposits simultaneously. This can cause a bank to become insolvent if they cannot pay back all the depositors. 

Which of the following facts about a bank make a bank run possible? 

A. Banks hold only about 15 per cent of their deposits as cash. The rest of the deposits are given out as loans. 

B. Banks have to pay a specific amount to the person in whose name a cheque has been issued. 

C. Banks charge a higher interest rate on loans than what they offer on deposits. 

D. Banks pay an amount to account holders as interest on deposits.