An Investment Maturity Strategy Which Calls for a Bank to Have

question 22

Short Answer

An investment maturity strategy which calls for a bank to have one-half of its investment portfolio in very short term assets and the other half in long term assets is known as the ________________________.

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Definitions:

Natural Business Year

A fiscal year that ends when business activities have reached the lowest point in an annual operating cycle.

Formal Accounting Records

Official documents and books that systematically record financial transactions and positions of a business.

Work Sheet

An internal document used by accountants to prepare financial statements, gather information, and perform adjustments before the closing of accounts.

Reversing Entries

Journal entries made the first day of the period that are the exact opposite of the related adjusting entries of the prior period.