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:

Mental Road Map

A personal or conceptual plan or strategy that guides an individual’s decisions and actions towards achieving specific goals.

Team Problems

Issues and challenges that arise within a team setting, often requiring collaborative efforts for resolution.

Team Leadership

The practice of leading a team effectively by motivating members, coordinating efforts, and ensuring the team works towards common objectives.

Monitoring Function

The process of continuously observing and evaluating performance or progress to ensure goals are being met and to identify any need for corrective action.