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Explain How Shadow Banks, Which Don't Take Deposits, Can Have

question 189

Essay

Explain how shadow banks, which don't take deposits, can have bank runs.


Definitions:

Consumer Surplus

The gap between the price consumers are ready to pay for a good or service and the price they end up paying.

Market Demand

Represents the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Music Downloads

Digital files of music tracks that can be legally or illegally downloaded from the internet to a computer or mobile device.

Sugar Quotas

Government-imposed limits on the amount of sugar that can be imported or produced, often to stabilize domestic prices.

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