Answered

Explore a diverse range of topics and get answers from knowledgeable individuals on IDNLearn.com. Our platform offers comprehensive and accurate responses to help you make informed decisions on any topic.

The shadow banking system refers to:______.
a. Non-bank financial firms that acted as banks by borrowing and lending of U.S. Treasury bills in an effort to make a profit.
b. Non-bank financial firms that acted as banks by borrowing and lending in an effort to make a profit.
c. Non-bank financial firms that acted as stock brokers by buying and selling stocks in an effort to make a profit.
d. Non-bank financial firms that provide profit advice to hedge fund managers.

Sagot :

Answer:

b. Non-bank financial firms that acted as banks by borrowing and lending in an effort to make a profit.

Explanation:

A shadow banking system can be described as a group of non-bank financial intermediaries that render services that are similar to the services that normal commercial banks render but the members of the group are not subject to normal banking regulations.

In addition, a shadow baking system can also be described as unregulated services rendered by regulated institutions.

Structured investment vehicles (SIVs), limited-purpose finance companies (LPFCs), asset-backed commercial paper (ABCP) conduits, and among others are examples of shadow banks.

Based on this explanation, the correct option is b. Non-bank financial firms that acted as banks by borrowing and lending in an effort to make a profit.

We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. Your questions find answers at IDNLearn.com. Thanks for visiting, and come back for more accurate and reliable solutions.