Question: Given the correct answer for the first question, which must be true? O None of the above In the absence of preventative regulation, the risk

Given the correct answer for the first question, which must be true? O None of the above In the absence of preventative regulation, the risk assumed by shadow banks will be les Shadow banks are engaging in riskier behavior than their customers would prefer they e In the absence of preventative regulation, the risk assumed by shadow banks will be gre The risk assumed by shadow banks is equal to the socially optimal level of risk

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