As was demonstrated in 2007, firms in the shadow banking system
A) were very vulnerable to bank runs.
B) were protected from financial ruin by federal deposit insurance.
C) were more insulated from the financial crisis than were commercial banks.
D) were well insulated from bank runs.
A
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Which of the following is NOT an output of the production function?
A) a haircut B) a share of Acme Corporation stock C) a case of soda pop D) an extra-large pepperoni pizza
Suppose that a competitive market is initially in equilibrium. Then demand increases. If some resources used in production are not available in sufficient quantities for entering firms,
a. the long-run market supply curve will be upward sloping. b. the long-run market supply curve will be perfectly elastic. c. in the long run firms will suffer economic losses, leading them to exit the industry. d. the number of firms will decrease, and the market will become a monopoly.