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:

Taxable Income

The amount of income used to determine an individual or corporation's income tax liability, after deductions and exemptions.

Accrued Warranty Costs

Costs anticipated for the future repair or replacement of products, recognized in financial statements before the costs are actually incurred.

Pretax Accounting Income

The income an organization has earned before any taxes have been deducted, used to calculate taxable income after adjusting for any differences between accounting and tax regulations.

Enacted Tax Rate

The tax rate established by law that is applied to income or transactions.