A bank names its lending technologies by their primary source of information. Match the correct primary information source to each technology:(i) Fixed-asset lending uses ___; (ii) Relationship lending uses ___; (iii) Small business credit scoring uses ___

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?

Based on the patterns in Exhibits 2 and 3, which of the following regulatory reforms would most directly address the vulnerabilities that led to Pinnacle’s distress? (select all that apply)

A bank offers a borrower two deposit products: a 6-month CD paying 4.5% interest and a checking account paying 0.1% interest. The depositor chooses the checking account. This choice reveals:

Panel C of Exhibit 2 shows that Pinnacle’s Net Interest Margin (NIM) fell from 2.8% to 1.1% while Northern Trust’s NIM actually rose from 2.5% to 3.1%. What explains this divergent behavior?

Calculate Harborview Savings Bank’s total liquidity creation. Which value is closest to its LC/TA ratio?

Consider the Pinnacle Growth Bank scenario from Exhibits 2 and 3. Pinnacle’s deposits fell from 55% to 36% of TA while 92% of its deposits were uninsured. Apply the Diamond-Dybvig framework: which model elements are present in this scenario? (select all that apply)

Bayshore Community Bank ($550M) shows the mildest deterioration across all six panels of Exhibit 2 despite being the smallest bank. Which characteristics of its balance sheet profile most likely explain its resilience? (select all that apply)

Summit Trust’s liability structure shows foreign deposits at 3.0% of TA. Under the LC framework, how should foreign deposits be classified and why?

The Diamond-Dybvig model produces two equilibria. In the bad equilibrium, even patient depositors rush to withdraw. What specific model assumption creates the incentive for patient depositors to run?