In banking terminology, what is meant by maturity? What is meant by maturity transformation?
What will be an ideal response?
In banking terminology, maturity refers to the time until debt must be repaid. Maturity transformation is a process by which banks take short-maturity liabilities and invest in long-maturity assets.
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How does money make the circular flow model more efficient
A. Neither the product nor resource market can exist without money. B. Money gives firms an advantage over households, since they have more money. C. Money makes the product market more important than the resource market D. Having a common medium of exchange, like money, eliminates the need to barter.
The number of brands of identical products will most likely increase as
A) the number of informed consumers increases. B) the cost of producing many brands decreases. C) the number of uninformed consumers decreases. D) None of the above.
The economic evidence suggests that the incentives in nearly all welfare programs are
A. mixed; some studies show that welfare makes problems worse but most do not. B. actually counter to what was thought: the existence of welfare reduces the need for it. C. so powerful that welfare has unambiguously made problems worse. D. carefully structured to encourage the highest moral standards among recipients.
The largest portion of any nation's current account is typically
A. gold sales. B. imports and exports. C. foreign currency reserves. D. the sale of U.S. assets.