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

question 29

Multiple Choice

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

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Definitions:

Horizontal Analyses

Analysis technique for financial statements that evaluates changes in financial information over multiple reporting periods using percentage or absolute comparisons to find growth or decline trends.

Financial Statements

Reports that summarize the financial performance and position of a business, including the balance sheet, income statement, and cash flow statement.

Current Ratio

A measure used to evaluate a company’s liquidity and short-term debt-paying ability; computed by dividing current assets by current liabilities.

Vertical Analysis

A financial statement analysis method where each entry for each category is listed as a percentage of a base figure within the statement.