Having Longer Maturity Assets Than Liabilities Causes Banks to Bear

question 15

Multiple Choice

Having longer maturity assets than liabilities causes banks to bear which of the following risks?
I. Interest rate risk
II. Liquidity risk
III. Credit risk

• A)I only
• B)I and II only
• C)I and III only
• D)II and III only
• E)I,II,and III

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Definitions:

Linehaul Highway

A major transportation route designed for the efficient movement of goods and passengers over long distances.

Fully-Oscillating

Refers to a component or system, typically in heavy machinery, that has the ability to move or pivot freely in all directions.

Articulate Planes

refers to surfaces or structures that are connected in a way that allows for movement or adjustment, often found in machinery or anatomical structures to enable flexibility and range of motion.

Semi-Oscillating

Refers to a type of movement or mechanism that involves partial oscillation, often used in machinery or vehicle suspension systems.