Before the financial crisis in 2008 shadow banks:
A)were outside of the lender-of-last-resort system.
B)offered checkable deposits to their customers.
C)were not allowed to operate across state lines.
D)were required to hold more capital than depository banks.

Question

Quizplus · Accepted Answer

Shadow banks were not part of the traditional banking system and did not have access to the lender-of-last-resort system, which is a safety net provided by the central bank to help banks facing liquidity problems.

Before the Financial Crisis in 2008 Shadow Banks