The "Shadow Banking System" Refers to

question 197

Multiple Choice

The "shadow banking system" refers to

• A)the provision of credit through the underground economy when the financial crisis of 2007 and 2008 occurred.
• B)the process by which securities exchanges provide credit for personal and business needs apart from traditional bank lending.
• C)the series of illegal financial transactions that precipitated the financial crisis of 2007 and 2008.
• D)mortgage loans made to homebuyers who are poor credit risks.

---

Definitions:

Disposable Income

Financially viable resources for households' spending and saving strategies after deducting income taxes.

Consumption

The action of using up a resource or the purchase of goods and services by households.

APS

A generic term potentially referring to various organizations or concepts; without specific context, a precise definition cannot be provided. If referring to economic terms, it might be erroneous or too vague without further context.

Disposable Income

Disposable income is essentially the finance available for individuals or families to save or expend after all income tax charges have been subtracted.