A bank that mismatches its asset and liability maturities is
A) trying to reduce credit risk.
B) willingly accepting greater credit risk.
C) essentially engaging in interest-rate speculation.
D) trying to protect itself against interest rate movements.
C
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An industry can be defined as
A. a group of firms that compete to sell a specific product. B. any company that produces and sells products. C. the set of buyers of a particular good or service. D. the top companies that sell a product.
Other things equal, an increase in the interest rate will
a. decrease firms' investment expenditures b. increase the standard of living in the economy c. increase of the present value of capital good d. increase firms' investment expenditures e. encourage production of durable goods
Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced tomatoes this year. It employed the same number of labor hours each year. Real Foods' productivity
a. decreased 13%. b. was unchanged. c. increased 13%. d. increased 15%.
This profit-maximizing firm produces a quantity of about ________ units.
A. 40
B. 45
C. 50
D. 55