Before the 2008 financial crisis, shadow banks were:
A) much smaller than depository banks.
B) strictly regulated and therefore offered their customers lower rates of return than depository banks.
C) required to hold more reserves than depository banks.
D) not subject to regulations, such as capital requirements and reserve requirements.
Correct Answer:
Verified
Q191: Maturity transformation can be done by:
A)depository banks
Q192: During the banking crisis in the early
Q193: A shadow bank may be subject to
Q194: A situation in which borrowers cannot find
Q195: In a vicious cycle of deleveraging:
A)banks buy
Q197: Which of the following is a shadow
Q198: Which of the following is an explanation
Q199: Depository banks:
A)buy short-term securities from investors, change
Q200: Banks:
A)reduce the opportunity cost of the trade-off
Q201: If a financial institution is systemically important:
A)it
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