Discover the answers you need at Westonci.ca, where experts provide clear and concise information on various topics. Get immediate and reliable solutions to your questions from a community of experienced experts on our Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Increased leverage in the shadow banking system played a major role in the financial crisis of 2007-2009
a. True
b. False


Sagot :

True.

Because these organizations assumed excessive risk without the same regulatory scrutiny as traditional banks, increased leverage in the shadow banking system contributed significantly to the financial crisis of 2007–2009 and caused severe instability when the housing market crashed.