user: Jot down some important points about optical illusion from the given passage.

assistant: 1. Visual Illusion is caused by the visual system and characterized by a visual percept that appears
to be different from reality.
2. According to Richard Gregory a classification proposed by him is useful as an orientation that,
there are three main classes: physical, physiological, and cognitive illusions, and in each class
there are four kinds: Ambiguities, distortions, paradoxes, and fictions.
3. An example for a physical distortion would be the apparent bending of a stick half immerged in
water; an example for a physiological paradox is the motion aftereffect (where, despite
movement, position remains unchanged). 
4. An example for a physiological fiction is an afterimage
5. Three cognitive distortions are the  Ponzo , Poggendorff, and Müller-Lyer illusion.
6. Physical illusions are caused by the physical environment, e.g. by the optical properties of
water. Physiological illusions arise in the eye or the visual pathway.
7. The most widely know illusion is visual illusions which are the result of unconscious inferences.

user: Classify each of the following as either a liquid or a solid: puddle, cup, house, dog, bowl, water, juice

assistant: A puddle, water, and juice are liquids. Cups, houses, dogs, and bowls are solids.

user: What is a bank run?

assistant: To understand a bank run you have to first understand how a bank works. Banks take deposits from customers and agree to return the deposits at any time. However instead of charging a fee for storing the money, banks make a profit by investing the deposits, either by lending then out to businesses that need loans or by buying safe investments like treasuries.

The problem is that these investments typically are somewhat illiquid. So if a customer suddenly asks for their deposits back, the bank can’t immediately sell its investments to give it to them. To counter this, banks keep a pool of money on hand to handle day to day deposits and withdrawals.

However, if every customer wants to withdraw their deposits at once, the bank does not have enough money to give to every customer. This is a bank run.