1. How is the shadow banking system the same as the traditional banking system?
A) It intermediates the flow of funds between net savers and net borrows.
B) It serves as a middle man.
C) The complete credit intermediation is performed through a series of steps involving many nonbank financial service firms.
D) The complete credit intermediation is performed by a single bank.
2. The current ratio provides a better measure of overall liquidity only when a firm’s inventories can be easily converted into cash. Otherwise the quick ratio is a better measure of overall liquidity.
Is this statement TRUE or FALSE