Silicon Valley Bank Collapse Quiz

What is a fundamental reason for bank runs?

• Banks have too much money.

• Banks do not have depositors' money readily available.

• Banks invest only in real estate.

• Banks never make loans.

What was a key factor that led to the collapse of Silicon Valley Bank?

• Issuing too many credit cards.

• Investing in high-risk stocks.

• Investing in bonds that lost value due to rising interest rates.

• Opening too many branches.

How did the rising interest rates affect the bonds held by Silicon Valley Bank?

• Increased their value.

• Decreased their value.

• Made them more attractive to investors.

• Had no effect on their value.

What action did U.S. regulators take in response to the bank collapse?

• They closed all banks temporarily.

• They increased interest rates further.

• They seized another bank and implemented emergency measures.

• They ignored the situation.

What assurance was given to depositors after the bank collapse?

• Their deposits were not insured.

• They should withdraw all their money immediately.

• They should invest in more bonds.

• Their deposits were insured up to $250,000.