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

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. Explain whether the financial crisis of 20072009 will reinforce or change these trends.

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