Financial intermediaries involved in shadow banking typically: A. accept long-term deposits and make long-term loans. B....
Financial intermediaries involved in shadow banking typically:
| A. |
accept long-term deposits and make long-term loans. |
|
| B. |
borrow money short term and lend or invest long term. |
|
| C. |
borrow money long term and lend or invest short term. |
|
| D. |
accept short-term deposits and make short-term loans. |
Homework Answers
Under the shadow banking, financial intermediaries conduct similar operations as traditional banking by accepting deposits and lending loans. However the deposits accepted are short term and the loans provided are generally long terms
Select option B.
Add Answer to:
Financial intermediaries involved in shadow banking
typically:
A.
accept long-term deposits and make long-term loans.
B....
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1. In the federal funds market, _____.? a. ?banks make loans to the Fed b. ?the...
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2. A simple banking model. A bank raises funds by accepting deposits D in order to make loans L. The central bank requ...
2. A simple banking model. A bank raises funds by accepting deposits D in order to make loans L. The central bank requires that the bank hold a minimum quantity of reserves R in proportion to its deposits: where ρ is the required reserve ratio. You should assume that the bank does not hold excess reserves and has no capital. The hank is competitive ad takes the leding rate r, and the competitive and takes the lending rate rL and...
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amswer all
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amswer all
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