True/False
An FI that is short-funded faces the risk that the return of reinvesting assets could exceed the cost of funding those assets.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q9: What type of risk focuses upon future
Q17: A U.S.bank has €40 million in assets
Q19: Economies of scope involve the ability to
Q24: An advantage FIs have over individual household
Q78: The objective of technological expansion is to
Q82: Active trading of assets and liabilities creates
Q93: To be immunized against foreign currency and
Q103: The risk that many depositors withdraw their
Q107: Event risks often cause sudden and unanticipated
Q111: Individuals have an advantage over FIs in