Question: Which statement is TRUE? A fire sale occurs when an investment bank goes on a buying spree and buys assets quickly. The 2 0 0

Which statement is TRUE?

A fire sale occurs when an investment bank goes on a buying spree and buys assets quickly.

The

2007 - 2008

crisis resulted from low leverage and rising asset prices that created a panic in the shadow banking system and hence sharply reduced the amount of lending in the economy.

The Federal Deposit Insurance Corporation

(

FDIC

)

insures deposits of commercial banks up to $

200, 000 .

The shadow banking system includes investment banks.

Which statement is TRUE? A fire sale occurs when

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