Yeah, if a player misses, the player is gone but the bank stays. Somebody eventually takes the whole pot by getting eight right, and only then does the bank reset to zero. But since you have to get eight right to win, a brand new player would still win two grand, the value of his own eight questions.
It's a little like the escalating payouts on Super Password and other shows of that type. To a large degree, the amount you win isn't really dependent on your own abilities, but rather on what happened (or failed to happen) before you got there.