FinCap Friday: A Bank Run is No Fun

Which of the following is true about Silicon Valley Bank in early 2023?

• It was the single largest bank in America

• It was the 16th largest bank in America

• It was the smallest bank in America

• To provide free financial services to the communityIt was the bank that held the least amount of funds

What do banks do with customer deposits?1

• They either lend or invest most of the deposits.

• They hold all of the deposits in their vaults.

• They either give it to charity or invest it.

• They always invest every dollar that gets deposited.

Why did Silicon Valley choose to sell bonds at a loss in early 2023?

• They wanted to have extra cash on hand in case they needed it.

• They couldn't afford to pay the withdrawal requests.

• They wanted to use the cash to buy a physical bank building.

• They wanted to trade those bonds for stocks.

How did social media play a role in the collapse of Silicon Valley Bank?

• It helped Silicon Valley Bank explain the facts to the public.

• It led to a calmer public because of constant updates.

• It caused mass panic and led to a bank run.

• It was not impactful at all in the bank's failure.

What do experts suggest you do to protect your funds when choosing a bank?

• Bank at whichever institution offers the highest interest.

• Bank with the institution that has the best technology and features.

• Bank wherever your closest friends do their banking.

• Only bank with institutions that are federally insured.