1. Which of the following is NOT correct?

A. Bank run can happen when there is high unexpected withdrawals beyond the liquidity buffer of the bank

B. In case of bank run the problem can be solved through purchased and stored liquidity.

C. Bank run is not contagious.

D. Central bank is not responsible to solve bank run for FIs.

E. All of the listed options are not correct.

2. Bank run, justified or not, can force A DI (Depository Institution) into solvency. True or False?

3. When there is a bank run, and you are depositor, you run first. This is simply because depositors who come late will not receive the full amount of their financial claims, or in the worst case, will receive nothing at all. True or Flase?

4.

According to the two industry videos uploaded for you, which of the following is mostly correct in the bank run cases of the Bank of the United States in the US and the Northern Rock case in the UK?

a. The bank management could have prevented the bank run by closing the bank doors on the day of the bank run.

b. The bank management could have called the police earlier to prevent the depositors from arriving to the bank building.

c. The bank management could have asked the central bank to send them more cash

d. In the circumstance the bank management most probably can do nothing to prevent the bank run.

e. If they ask the crowed to come the second day, the problem could have been solved.