Shadow banks differ from commercial banks because shadow banks:
A)accept deposits only from businesses and state and local governments, not from individuals.
B)are not subject to as many regulations as commercial banks.
C)are not allowed to pay interest on deposits.
D)can operate branches in more than one state.

Question

Quizplus · Accepted Answer

Shadow banks are non-banking institutions that provide financial services similar to commercial banks, but they are not subject to the same regulations. This lack of regulation allows for them to take on more risk and potentially cause financial instability.

Shadow Banks Differ from Commercial Banks Because Shadow Banks