A bank run occurs when there are rumors (possibly true, possibly false) that a bank is at financial risk of having negative net worth. The most prominent task of a central bank is to conduct monetary policy, which involves changes to interest rates and credit conditions, affecting the amount of borrowing and spending in an economy.

Some prominent central banks around the world include the U.S. Federal Reserve, the European Central Bank, the Bank of Japan, and the Bank of England

bank run occurs when there — rumors (possibly true, possibly false) that a bank is at financial risk of having negative net worth. deposit insurance — an insurance system that makes sure depositors in a bank do not lose their money, even if the bank goes bankrupt. bank run — when depositors race to the bank to withdraw their deposits for fear that otherwise they would be lost. central bank — institution which conducts a nation’s monetary policy and regulates its banking system.