As Was Demonstrated in 2007, Firms in the Shadow Banking

question 47

Multiple Choice

As was demonstrated in 2007, firms in the shadow banking system

• A)were very vulnerable to bank runs.
• B)were protected from financial ruin by federal deposit insurance.
• C)were well insulated from bank runs.
• D)were more insulated from the financial crisis than were commercial banks.
• E)were less a source of macroeconomic risk than commercial banks.

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Financing that investors provide to startup companies and small businesses with perceived long-term growth potential.