How Is the Shadow Banking System the Same as the Traditional

question 58

Multiple Choice

How is the shadow banking system the same as the traditional banking system?

• A) It intermediates the flow of funds between net savers and net borrowers.
• B) It serves as a middle man.
• C) The complete credit intermediation is performed through a series of steps involving many nonbank financial service firms.
• D) The complete credit intermediation is performed by a single bank.

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Definitions:

Phonemic Encoding

It's a process in cognitive psychology where sounds of language are converted into mental representations of those sounds to be stored and recalled from memory.

Semantic Encoding

This is a process of encoding sensory input that has particular meaning or can be applied to a context, rather than merely identifying sensory data.

Visualizing

The process of forming mental images or pictures to understand, interpret, or anticipate events and information.

Rhyming Words

Words that have the same ending sound, commonly used in poetry and songs for aesthetic or mnemonic purposes.