When Shadow Banks Engage in Maturity Transformation, They Raise Funds

question 139

Multiple Choice

When shadow banks engage in maturity transformation, they raise funds by _____ and invest in _____.

• A)issuing stock; stock of other companies
• B)selling bonds; Treasury bills
• C)borrowing in short-term credit markets; longer-term speculative investments
• D)borrowing in long-term credit markets; short-term speculative investments

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Definitions:

Born

The process of coming into life or existence.

Exemplary Leader

A person who sets a prime example for others in leadership through their actions, ethics, and commitment to excellence.

Questioned

To be asked for information or clarification, often in a probing or investigative manner.

Challenged

In a broad sense, this refers to being in a state that requires facing and overcoming difficulties or obstacles.