The Fact That a Bank's Assets Tend to Be Long-Term

question 109

Multiple Choice

The fact that a bank's assets tend to be long-term while its liabilities are short-term creates:

• A) interest-rate risk.
• B) credit risk.
• C) lower risk for the bank, this is why they follow this strategy.
• D) trading risk.

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Definitions:

Risks

Potential events or actions that may cause loss or hinder achievement of objectives.

Probability Of Success

The likelihood of achieving a goal or completing a task successfully, often expressed as a percentage.

American Sign Language (ASL)

A complete, natural language that serves as the predominant sign language of Deaf communities in the United States and most of Anglophone Canada.

Washoe

A female chimpanzee who was the first non-human to learn to communicate using American Sign Language.