Multiple Choice
Generally speaking the maturity mismatch of banks is due to
A) having short term liabilities and long term assets
B) having long term liabilities and short term assets
C) liabilities that pay a fixed rate of interest and assets that pay a variable rate
D) depositors that are willing to keep their money in the bank for many years whilst loans are often short term
E) all of the above
Correct Answer:

Verified
Correct Answer:
Verified
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