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How Is the Shadow Banking System the Same as the Traditional

Question 21

Multiple Choice

How is the shadow banking system the same as the traditional banking system?


A) It intermediates the flow of funds between net savers and net borrowers.
B) It serves as a middle man.
C) The complete credit intermediation is performed through a series of steps involving many nonbank financial service firms.
D) The complete credit intermediation is performed by a single bank.

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