An FI That Holds More Short-Term Assets Relative to Long-Term

question 56

Multiple Choice

An FI that holds more short-term assets relative to long-term liabilities is:

• A)exposed to refinancing risk
• B)exposed to restructuring risk
• C)exposed to reinvestment risk
• D)not exposed to any risks

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Definitions:

Closely Held Corporation

A business entity owned by a small number of shareholders, where shares are not publicly traded.

Articles Of Incorporation

A method of incorporating based on a US approach and used in some jurisdictions in Canada.

Memorandum

A written document that communicates information, policies, or decisions within an organization or between entities.

Lift The Corporate Veil

A legal action to treat the rights or liabilities of a corporation as the rights or liabilities of its shareholders or directors.