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When Shadow Banks Engage in Maturity Transformation, They Raise Funds

Question 139

Multiple Choice

When shadow banks engage in maturity transformation, they raise funds by _____ and invest in _____.


A) issuing stock; stock of other companies
B) selling bonds; Treasury bills
C) borrowing in short-term credit markets; longer-term speculative investments
D) borrowing in long-term credit markets; short-term speculative investments

Correct Answer:

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