Which of the following is NOT a reason that firms in the shadow banking system were more vulnerable than commercial banks during the financial crisis of 2007-2009?
A) They could invest in riskier assets.
B) Investors had no insurance against loss of principal.
C) They made investments that would lose value if housing prices decline.
D) They were more heavily regulated than commercial banks, making them less able to adjust to changing market conditions.
D
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Why is the unemployment rate never zero, even at full employment?
What will be an ideal response?
If the price of good X (measured on the horizontal axis of a budget line diagram) increases at the same time that the price of good Y (measured on the vertical axis) increases, the budget line
a. will necessarily become steeper b. will necessarily become flatter c. will remain unchanged d. will shift outward in a parallel fashion e. could become either steeper or flatter, depending on the sizes of the price changes