Final answer:
Bank runs can lead to bank failures, which the Fed tries to prevent by acting as a lender of last resort.
Explanation:
Bank runs can cause solvent banks to fail, leading to instability in the financial system. The Federal Reserve (Fed) acts as a lender of last resort to prevent this by providing funds to banks. Deposit insurance and regulatory measures aim to reassure customers and prevent bank runs.
Learn more about Bank runs and the Federal Reserve here:
https://brainly.com/question/38821081
