[Solved] How Are Firms in the Shadow Banking Industry Different from Traditional

Question 191
Multiple Choice

How are firms in the shadow banking industry different from traditional banks?

A)Traditional banks face more regulation.
B)Traditional banks are entirely legal, while the shadow banks exist in a legal grey area.
C)Traditional banks fund most of their lending from the wholesale market while shadow banks fund lending by taking deposits.
D)Shadow banks offer lower returns to investor than traditional banks in good economic times.
E)Shadow banks deal more directly with central banks than traditional banks.

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