Q164
Risk of financial institutions which states mismatching assets maturities and liabilities maturities is classified as
A.
selling intermediation
B.
maturity intermediation
AnswerC.
direct intermediation
D.
indirect intermediation
Answer: Option B
Solution
Answer: Option B
Solution:
Risk of financial institutions which states mismatching assets maturities and liabilities maturities is classified as maturity intermediation. Maturity intermediation is an investment term that describes a bank's long-term lending on funds borrowed for a short-term investment.