1. What does the term "panic-based" bank run refer to? a. The situation when a bank faces massive deposit withdrawals because depositors have pessimistic expectations about the bank's future prospects. b. The situation when a bank faces massive deposit withdrawals because depositors rush to the bank believing that others will do the same. c. The situation when a bank has to sell its assets because of the massive deposit withdrawals. d. The situation when a bank is unable to raise new funds because of the spread of negative information about its future prospects. 2. Which of the following is not a chain of contagion? a. Information channel. b. Sovereign default. c. Domino effect. d. All of the above (i.e., a, b, c). 3. Which of the following events might increase the probability of a bank run? a. Business cycle expansion b. Greater optimism on the bank asset side quality c. The need to offer a higher deposit rate due to fiercer bank competition. d. A fall in the cost of liquidation of the long-run investment 4. Which, among the following, is a source of liquidity risk? a. Risk that a sudden decrease in liability withdrawals forces the bank to liquidate assets in a short period of time. b. Risk that a sudden increase in the exercise of off-balance-sheet commitments requires a bank to use its cash reserves. c. Risk that a sudden increase in the exercise of off-balance-sheet commitments requires a bank to liquidate assets in a short period of time at low prices. d. Risk that the release of bad news about a bank leads to the failure of other banks