The policy which would would increase the risk of a liquidity crisis is Banks
being required to store a smaller percentage of depositor funds in their
vaults.
Liquidity occurs when there is an increase in demand and decrease in
supply. Banks usually have a large percentage of depositor funds stored in
their vault to prevent these occurrence.
In situations whereby they store a smaller percentage of depositor funds in
their vaults , it will lead to a liquidity crisis as they won't be able to cater for
the immediate needs of the depositors.
Read more about Liquidity crisis here brainly.com/question/921670
