Question

The shadow banking system refers to Group of answer choices nonbank financial institutions such as investment banks and hedge funds. community banks. pawn shops and institutions that offer payday loans. commercial banks.

Answer 1

Answer: nonbank financial institutions such as investment banks and hedge funds

Answer 2

Answer:

The shadow banking system refers to

A. non-bank financial institutions such as investment banks and hedge funds.

B. community banks.

C. pawn shops and institutions that offer payday loans.

D. commercial banks.

A. non-bank financial institutions such as investment banks and hedge

Explanation:

Shadow banking system is a system of banking that is carried out by non-financial institutions, where they act as financial intermediaries or helping hands. These institutions serve as the link between investors and businesses that need such funds.

Shadow banks include:

• investments banks,
• hedge funds and
• all non-depository banks.

Shadow banking is beneficial to the economy as it increases the sources of credit for individuals and business.