Answered

Welcome to Westonci.ca, where curiosity meets expertise. Ask any question and receive fast, accurate answers from our knowledgeable community. Join our platform to connect with experts ready to provide precise answers to your questions in various areas. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

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.

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.