An FI That Has Liability Maturities Longer Than Asset Maturities

question 21

True/False

An FI that has liability maturities longer than asset maturities faces the risk that the return of reinvesting assets could exceed the cost of funding those assets.

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Definitions:

Memo-Style Communication

A concise, written form of communication typically used within organizations to inform or instruct employees.

Informal

Relaxed, casual, or not adhering strictly to rules or formalities.

Specific Concern

A particular issue or problem that requires attention or resolution.

Effective Way

A method or approach that achieves desired results or outcomes with efficiency.