Multiple Choice
A shadow bank may be subject to a bank run if:
A) its depositors withdraw their funds because they fear that it is financially unsound.
B) depositors decide that the FDIC insurance of $250,000 per account is insufficient to cover their potential losses.
C) they purchase too many government securities.
D) the shadow bank's lenders decide it is unsafe and stop lending it money.
Correct Answer:

Verified
Correct Answer:
Verified
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