When we refer to the shadow banking system,what are we talking about?
A) Hedge funds, investment banks, and other nonbank financial firms that supply liquidity
B) The "underground" banking system used for illegal activities
C) The subsidiaries of depository institutions
D) None of the above

Question

Quizplus · Accepted Answer

The shadow banking system refers to nonbank financial institutions that provide credit intermediation services but are not regulated as traditional banks. This includes hedge funds, investment banks, and other nonbank financial firms that supply liquidity.

When We Refer to the Shadow Banking System,what Are We