Since the early 1980s, shadow banks have increased because they:
A)are not subject to capital requirements and reserve requirements.
B)offer online bill payment to their depositors.
C)pay lower interest rates on their deposits than commercial banks.
D)offer lower interest rates on their commercial loans than commercial banks.

Question

Quizplus · Accepted Answer

Shadow banks, also known as non-bank financial institutions, are not subject to the same capital and reserve requirements as traditional commercial banks. This allows them to operate with less regulatory oversight and potentially take on more risk.

Since the Early 1980s, Shadow Banks Have Increased Because They