Banks have a maturity mismatch since
A) they borrow short term, but lend long term.
B) they borrow long term, but lend short term.
C) some of their borrowings are short term while others are long term.
D) some of their loans are short term while others are long term.
Answer: A
Money and Banking
- Which government agency regulates futures markets?
- What regulatory change did Congress approve in 2010 to reduce counterparty risk in the shadow banking system?
- The shadow banking system refers to
- Which of the following is likely to be more of a problem after the introduction of deposit insurance?
- Which of the following is NOT a reason that firms in the shadow banking system were more vulnerable than commercial banks during the financial crisis of 2007-2009?
- The largest institutional participants in capital markets are
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- The fee charged by a typical hedge fund are sometimes called:
- Mutual funds
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- A syndicate is
- The due diligence process refers to
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- National banks are chartered by the
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- How does the use of adjustable-rate mortgages affect interest-rate risk?
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