Which of the Following Is NOT a Reason That Firms

question 96

Multiple Choice

Which of the following is NOT a reason that firms in the shadow banking system were more vulnerable than commercial banks during the financial crisis of 2007-2009?

• A) They could invest in riskier assets.
• B) Investors had no insurance against loss of principal.
• C) They made investments that would lose value if housing prices decline.
• D) They were more heavily regulated than commercial banks, making them less able to adjust to changing market conditions.

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Definitions:

Cultural Differences

Variations in the norms, values, beliefs, and practices among people from different backgrounds or communities.

Subjectivity

The quality of being based on or influenced by personal feelings, tastes, or opinions rather than external facts.

Subordinate Satisfaction

The level of contentment, motivation, and engagement experienced by employees towards their work and the workplace hierarchy.

Unit Performance

A measure of the effectiveness, efficiency, and quality of outputs produced by a specific department or team within an organization.