Shadow banks ________ borrow short-term funds that are not federally insured and use them for long-term investment,and therefore ________ to runs similar to those that occurred during the financial crisis.

Question

Quizplus · Accepted Answer

Shadow banks still borrow short-term funds that are not federally insured and use them for long-term investments, making them vulnerable to runs similar to those that occurred during the financial crisis. Therefore, the best choice is A.

Shadow Banks ________ Borrow Short-Term Funds That Are Not Federally