A. In a commercial bank the money comes from investments, while in an investment bank, the money comes from depositors.
B. If investors begin to doubt the solvency of an investment bank, it may lead the short-term loans to disappear more quickly because they are rolled over on a very frequent basis.
C. The shadow banking system includes only investment banks.
D. The investments of investment banks are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.
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Home » Business » Which statement is TRUE? A. In a commercial bank the money comes from investments, while in an investment bank, the money comes from depositors. B.