BUSI 606 Week 2 DB Forum 1: Part C Example

Reviewed by Thomas Kerrigan, MBA, CPA · Liberty University · Updated

This BUSI 606 Week 2 sample completes Discussion Board Forum 1 with Part C, two replies to classmates' threads on the global financial system. The first reply builds on a classmate's account of the 2023 failure of Silicon Valley Bank with research estimating how far rising interest rates had cut the market value of U.S. banks' assets and how exposed many banks were to runs by uninsured depositors, along with evidence on runs at money market funds in March 2020. The second reply tests a classmate's claim that dollar stablecoins are as safe as bank deposits, using a study of how arbitrage and issuer redemption keep stablecoin prices near one dollar, and noting what the new U.S. stablecoin law does and does not change. Liberty University BUSI 606 grades the full three-part MBA forum for 125 points.

CourseBUSI 606 Global Financial Markets (BUSI606)
Module/Week2
AssignmentDB Forum 1: Part C
Paper typeTwo discussion replies
Lengthabout 525 words (thread and replies). Course guide: replies to at least 2 classmates' Forum 1 threads, graded together with Parts A and B
FormatAPA 7 citations and reference list
Points125
SchoolLiberty University Online
ProgramMBA
Where it sitsModule/Week 2 in Liberty's published BUSI 606 course guide; current sections can differ
UpdatedOctober 2026

Free sample paper for BUSI 606 Week 2

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Discussion Board Forum 1: Part C, Replies

BUSI 606 Global Financial Markets, Discussion Board Forum 1: Part C (replies)

Thread by [Student Name]

The two classmates and their key topics are composites; the research cited is real, and the requirements follow Liberty's public course guide for BUSI 606.

Reply to Jonathan

Why this part earns its pointsThe reply moves the classmate's single-bank story to the system-wide evidence, which is where the policy lesson lies.
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Jonathan, your timeline of Silicon Valley Bank's collapse in March 2023 was clear, especially your point that the bank's losses were on securities it had classified as held to maturity, so they did not appear in its reported capital. Research suggests SVB was an extreme case of a broad problem rather than an isolated one. Jiang et al. (2024) estimated how far the rapid rise in interest rates during 2022 had pushed the value of bank assets below their book amounts and found an aggregate decline of roughly $2 trillion relative to book values. Losses of that size were survivable as long as depositors stayed, but the authors showed that lenders funded heavily by deposits above the insurance limit were vulnerable: if enough uninsured depositors withdrew, a substantial number of other banks could have become insolvent on a marked-to-market basis.

That finding connects your topic to the textbook's discussion of liquidity and solvency. A balance sheet that looks sound under accounting rules offers no protection once depositors decide to leave, and uninsured depositors have every reason to leave first. Li et al. (2021) found a similar dynamic in money market funds in March 2020: funds whose liquidity was close to the threshold at which they could impose redemption fees or gates experienced heavier outflows, because investors withdrew before restrictions could apply. Rules meant to stop runs can trigger them.

The common lesson is that runs are about expectations, and anything that makes investors fear being last can start one. Do you think raising deposit insurance limits for business accounts would address the problem, or would it simply shift risk to taxpayers?

Reply to Priya

Why this part earns its pointsThe reply accepts the classmate's evidence on peg stability and then identifies the mechanism and its limits.
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Priya, your thread made a good case that the largest dollar stablecoins have held close to one dollar most of the time and are now widely used for trading and cross-border transfers. I agree with the observation, but I would question the conclusion that they are as safe as bank deposits. Lyons and Viswanath-Natraj (2023) studied what keeps stablecoins near their pegs and found that arbitrage plays the key role: when a coin trades below a dollar, traders buy it and redeem it with the issuer for a dollar, and when it trades above, they create new coins. That mechanism works only as long as the issuer can and will redeem at par, which depends on the quality and liquidity of its reserves.

Bank deposits rest on different foundations. Insured deposits are protected by the government, and banks can borrow from the central bank in a crisis. A stablecoin holder has neither protection unless the law provides it. The stablecoin legislation the United States enacted in 2025 requires payment stablecoins to be backed by high-quality liquid reserves and sets rules for issuers, which strengthens the redemption mechanism, but it does not make stablecoins insured deposits. In a panic, a stablecoin backed by Treasury bills could still face a run like the money market fund runs of 2020 if holders doubted that reserves could be sold quickly at full value.

Would you treat a stablecoin as equivalent to a money market fund share rather than a deposit? That comparison might fit the risks more closely.

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References

Jiang, E. X., Matvos, G., Piskorski, T., & Seru, A. (2024). Monetary tightening and U.S. bank fragility in 2023: Mark-to-market losses and uninsured depositor runs? Journal of Financial Economics, 159, Article 103899. https://doi.org/10.1016/j.jfineco.2024.103899

Li, L., Li, Y., Macchiavelli, M., & Zhou, X. (2021). Liquidity restrictions, runs, and central bank interventions: Evidence from money market funds. The Review of Financial Studies, 34(11), 5402-5437. https://doi.org/10.1093/rfs/hhab065

Lyons, R. K., & Viswanath-Natraj, G. (2023). What keeps stablecoins stable? Journal of International Money and Finance, 131, Article 102777. https://doi.org/10.1016/j.jimonfin.2022.102777

What the BUSI 606 Week 2 instructions ask

Part C of the first BUSI 606 forum falls in Module/Week 2, a week in which no new chapters are assigned: students review the earlier readings and view one presentation. Every student must answer the Part B threads of two or more classmates. It sets no word count for replies, but replies in a graduate forum built on threads of 500 words or more should be substantial, engage the classmate's key topic directly and bring in research of their own. Once Part C is posted, the instructor grades Parts A, B and C together, and the forum is worth 125 points, one of four such forums in the course.

How this BUSI 606 Week 2 example is built

The first reply credits a classmate's clear timeline of Silicon Valley Bank's collapse and adds the system-wide picture from Jiang, Matvos, Piskorski and Seru, who showed that higher rates had left many banks with large unrealized losses that mattered most where uninsured deposits were high. It connects that finding to Li and colleagues' study of money market fund runs. The second reply grants that the largest stablecoins have mostly held their pegs, explains with Lyons and Viswanath-Natraj how that stability depends on arbitrage and the issuer's willingness to redeem, and argues that reserves and redemption rights, not the label, determine safety. Both replies end with a question the classmate can carry into the next forum.

BUSI 606 Week 2 grading rubric: where the points go

Part C is graded with Parts A and B, and instructors look for replies to at least two classmates that engage each thread's key topic specifically, add knowledge from the readings and outside research, and advance the discussion with a question or an implication. Replies in this course are expected to carry the same scholarly standard as threads, so citing recent research and stating findings accurately earns more credit than general agreement. Concepts from the first chapters should appear correctly, including deposit insurance, liquidity and solvency, maturity transformation, the lender of last resort and the role of money market instruments. A reply that cites the same articles as the classmate's thread adds little.

BUSI 606 Week 2 help: mistakes that cost points

Choose classmates whose topics you can add something to, and read the articles they cited so you do not repeat them. In each reply, state the classmate's main point in a sentence, then add a study, a data point or a distinction the thread did not make, and end with a question. Aim for roughly 250 to 300 words per reply, a length that matches the depth of the threads. Keep the tone collegial; the forum is graded as a whole, so thoughtful replies can strengthen a thread that was only adequate. Check that every source you cite is published and that its finding is stated in your own words.

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What is BUSI 606 Discussion Board Forum 1 Part C?

The second-week stage of the first forum, when every student responds to two or more classmates' threads; the instructor then scores Parts A, B and C as one 125-point assignment.

Where can I find a free BUSI 606 Week 2 sample paper?

The BUSI 606 Week 2 Part C replies on this page answer classmates on the 2023 bank failures and on whether stablecoins are as safe as deposits.

Why did Silicon Valley Bank fail?

Rising interest rates cut the market value of its long-term securities while much of its funding came from uninsured deposits, and when depositors feared losses they withdrew funds faster than the bank could raise cash.

Are stablecoins as safe as bank deposits?

Not necessarily: a stablecoin holds its value only as long as its reserves are sound and holders can redeem at par, and it lacks the deposit insurance and central bank access that protect bank deposits.

What else is due in BUSI 606 Module/Week 2?

Nothing beyond Part C of Forum 1; the week is set aside for reviewing the opening six chapters of the Valdez and Molyneux text and viewing one presentation.

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