7-3 an FI Is Short-Funded When the Maturity of Its

question 60

True/False

7-3 An FI is short-funded when the maturity of its liabilities is less than the maturity of its assets.

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Definitions:

Reverse Stock Split

A corporate action that consolidates the number of existing shares of stock into fewer, proportionally more valuable shares.

Shares

Units of ownership interest in a corporation or financial asset, providing a proportionate claim on its assets and profits.

Stock Split

An action by a corporation where it splits its current shares into numerous shares, aiming to increase the shares' liquidity.

Stock Splits

A corporate action to increase the number of shares, thereby reducing the price per share without altering the company's market capitalization.