Generally Speaking the Maturity Mismatch of Banks Is Due to

question 14

Multiple Choice

Generally speaking the maturity mismatch of banks is due to

• A) having short term liabilities and long term assets
• B) having long term liabilities and short term assets
• C) liabilities that pay a fixed rate of interest and assets that pay a variable rate
• D) depositors that are willing to keep their money in the bank for many years whilst loans are often short term
• E) all of the above

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Definitions:

Break-Even

The point at which total revenues equal total costs, resulting in neither profit nor loss.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Profit And Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year.

Cost Volume Profit Analysis

A managerial accounting technique used to analyze how changes in cost and volume affect a company's operating income and net income.