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One Justification for Greater Regulation of Traditional Commercial Banks Than

Question 17

Multiple Choice

One justification for greater regulation of traditional commercial banks than of shadow banks is the:


A) lower amounts of capital and higher amounts of risky assets held at banks.
B) absence of economy-wide repercussions when shadow banks fail.
C) more limited opportunities for excessive risk-taking by shadow banks.
D) existence of government insurance of bank deposits.

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