Q. The term Shadow Banking, recently seen in the news, is best described by which of the following statements?

[A] It refers to illegal banking activities carried out by unlicensed moneylenders.

[B] It refers to a network of financial intermediaries and institutions that operate outside the traditional

[C] It refers to the black money held by banks in offshore accounts.

[D] It refers to cryptocurrency transactions carried out through traditional banks.

Answer: B
Notes:

Explanation: Shadow Banking includes entities like NBFCs, hedge funds, and other intermediaries which perform bank-like activities (like lending) but are outside the regular banking system and face lighter regulations than traditional banks.

Source- moneycontrol

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