When a bank experiences withdrawals of deposits and short-term loans by firms and other banks, the situation is described as institutional bank run.
Given that bank experiences withdrawals of deposits and short-term loans by firms and other banks.
We are required to complete the sentence.
The term which will fill the blank is institutional bank run.
A bank run basically occurs when large groups of depositors withdraw their money from banks simultaneously based on fears that the institution will become insolvent. When more people withdrawing money, banks will use up their cash reserves and ultimately end up defaulting.
Hence when a bank experiences withdrawals of deposits and short-term loans by firms and other banks, the situation is described as institutional bank run.
Learn more about bank run at https://brainly.com/question/27243374
#SPJ4
