Which of the Following Situations Pose a Refinancing Risk for an FI

question 114

Multiple Choice

Which of the following situations pose a refinancing risk for an FI?

• A)An FI issues $10 million of liabilities of one-year maturity to finance the purchase of $10 million of assets with a two-year maturity.
• B)An FI issues $10 million of liabilities of two-year maturity to finance the purchase of $10 million of assets with a two-year maturity.
• C)An FI issues $10 million of liabilities of three-year maturity to finance the purchase of $10 million of assets with a two-year maturity.
• D)An FI matches the maturity of its assets and liabilities.
• E)All of the options.

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Definitions:

Viral Marketing

A marketing strategy that encourages individuals to share a marketing message to friends, family, and other contacts, creating exponential growth in the message's exposure and influence.

Channel Performance

The assessment of the effectiveness and efficiency of a distribution channel or pathway in meeting customer demands and delivering products or services.

Multichannel Marketing

The practice of using multiple channels to reach customers, including digital, print, broadcast, and direct mail.

Measurement Difficulty

The challenge faced when trying to quantitatively assess or gauge a particular variable or quantity.