An article in the Wall Street Journal on the shadow banking system contained the following observation: If

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An article in the Wall Street Journal on the shadow banking system contained the following observation: "If investors rush to the exits en masse, acting as a herd, asset prices could plummet and markets could face funding problems." Why might people who have invested in a money market mutual fund, for example, be more likely to "rush to the exits" if they heard bad news about the fund's investments than would bank depositors if they received bad news about their bank's investments?
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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