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The Benefit of Stricter Capital Requirements for Shadow Banks Is

Question 82

Multiple Choice

The benefit of stricter capital requirements for shadow banks is _____, while the cost is _____.


A) the end of risk-taking behavior; the development of more profitable opportunities
B) increased monitoring of risk-taking behavior; higher executive compensation
C) enhancing financial stability; impeding financial intermediation
D) lower inflation; higher unemployment

Correct Answer:

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