Question: Exhibit 2.7 documents the sharp drop in financial assets controlled by depository institutions. Explain why depository institutions are losing market share. What must happen for

Exhibit 2.7 documents the sharp drop in financial assets controlled by depository institutions. Explain why depository institutions are losing market share. What must happen for them to reverse this trend? Explain why mutual funds and pension funds are increasing their market shares. Do you think the financial crisis of 2008-2009 will change this trend?

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