Author: Anonymous

Which type of amnesia is characterized by an inability to form new long-term memories, often due to damage to the hippocampus?

Where is the localized collection of blood found in a subdural hematoma?

In the Diamond-Dybvig model, bank runs occur because the bank made poor investment choices or took on excessive risk.

Based on Exhibit 4, which bank type most closely represents the traditional “3-6-3” model of banking (pay 3% on deposits, charge 6% on loans, golf by 3pm)?

In Exhibit 3, Pinnacle’s fed funds purchased rose from $14,400M (8.0% of TA) to $32,400M (18.0% of TA)—more than doubling. Combined with the deposit decline from 55.0% to 36.0% of TA, what does this funding substitution reveal?

Hard information (quantitative, verifiable data like credit scores and audited financial statements) benefits from economies of scale because it can be processed cheaply across millions of loans by algorithms, while soft information (qualitative, subjective data like borrower character) has scale diseconomies because it is difficult to transmit across organizational layers.

In 2018, Congress raised the SIFI threshold from $50 billion to $250 billion. Based on the scenario in Exhibits 2 and 3, Pinnacle Growth Bank ($180 billion in assets) falls between these two thresholds. Why is this regulatory gap significant?

A community bank loan officer has personally known a local dry cleaner’s owner for 15 years. The owner’s financial statements show marginal profitability, but the officer knows from personal observation that the owner lives modestly, has strong community ties, and has never missed a payment on prior loans. The officer approves a $200,000 expansion loan. This lending decision primarily relies on:

In Exhibit 2, Panel F shows that 92% of Pinnacle’s deposits were uninsured at the start of the period. Using the Diamond-Dybvig framework, why does this concentration of uninsured deposits make the observed deposit run more predictable?

Using Exhibit 1, which single action would most effectively increase Harborview’s LC/TA ratio?