The fact that a bank's assets tend to be long-term while its liabilities are short-term creates:
A. lower risk for the bank, this is why they follow this strategy.
B. credit risk.
C. trading risk.
D. interest-rate risk.
Answer: D
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If the Federal Reserve conducts an open market sale, the
A) interest rate will decrease. B) interest rate will increase. C) interest rate will not change. D) money supply is increased.
Which of the following is true concerning the national debt?
a. It equals the budget deficit. b. When the budget deficit is declining, the national debt will fall. c. A budget deficit will reduce the national debt. d. A budget surplus will reduce the national debt.
If the U.S. government were to run a substantial budget deficit, what would be the effects on the economy under the new classical view?
Which of the following is NOT a part of the path-goal theory?
a. provides a clear path b. helps remove barriers to the problems c. increases the rewards along and at the end of the route d. none of the above