A Shadow Bank May Be Subject to a Bank Run

question 173

Multiple Choice

A shadow bank may be subject to a bank run if:

• A)its depositors withdraw their funds because they fear that it is financially unsound.
• B)depositors decide that the FDIC insurance of $250,000 per account is insufficient to cover their potential losses.
• C)they purchase too many government securities.
• D)the shadow bank's lenders decide it is unsafe and stop lending it money.

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