Silicon Valley Bank Tries to Prevent Bank Run After Shocking Collapse

Silicon Valley Bank Tries to Prevent Bank Run After Shocking Collapse

Assessment

Interactive Video

Business

University

Hard

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The video discusses the collapse of Silicon Valley Bank (SVB) and the role of the FDIC in managing the situation. It highlights the impact on customers and the tech industry, with concerns about payroll and funding for startups. Investors express shock and uncertainty, with some advising portfolio companies to move funds. The video also explores the historical context of SVB's rise and fall, including interest rate miscalculations and the resulting financial strain. The concept of herd mentality is examined, showing how it influenced market behavior and decisions.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role is the FDIC expected to play in the situation with Silicon Valley Bank?

Investing in tech companies

Reducing interest rates

Taking over the bank

Providing loans to startups

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was one of the main reasons for Silicon Valley Bank's financial issues?

High employee turnover

Interest rate miscalculations

Poor marketing strategies

Lack of customer deposits

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did the venture capital community react to the news about Silicon Valley Bank?

They increased their investments

They advised portfolio companies to withdraw funds

They ignored the situation

They supported the bank with additional funds

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What behavior among investors and startups is highlighted in the final section?

Risk aversion

Innovative thinking

Herd mentality

Contrarianism

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the scenario with Silicon Valley Bank suggest about the tech industry's contrarianism?

It is mostly absent

It is irrelevant

It is very strong

It is increasing