Before 2010 and Passage of Dodd-Frank, Shadow Banks Offered Their

question 37

Multiple Choice

Before 2010 and passage of Dodd-Frank, shadow banks offered their customers a higher rate of return than commercial banks because shadow banks _____, but commercial banks _____.

• A)could pay interest on deposits; could not.
• B)were allowed to invest in stocks of foreign corporations; could invest only in stocks of U.S. corporations.
• C)had to hold a large amount of reserves and capital; were not required to keep as much in reserve
• D)were not subject to reserve and capital requirements; had to hold reserves and meet capital requirements

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Definitions:

Historical Time

refers to a specific period in history, characterized by distinct events, developments, and cultural practices.

Cohort

A group of individuals who share a defining characteristic, typically observed over a certain period of time to detect changes or developments.

Toxic Agents

Substances that cause harm to organisms through chemical reactions or other mechanisms when absorbed into the body.

Placenta

A temporary organ that connects the developing fetus to the uterine wall to allow nutrient uptake, waste elimination, and gas exchange through the mother's blood supply.