Maturity is which of the following?
A)The degree to which a financial instrument can be converted to cash without loss of value
B)The rate at which the economy is changing
C)The term used to describe the Federal Reserve quasi-independent government relationship
D)The amount of time a net borrower has to repay a debt

Question

Quizplus · Accepted Answer

Maturity refers to the amount of time a borrower has to repay a debt. This can be important for lenders as it indicates the level of risk associated with the loan. A longer maturity period may be seen as riskier as there is more time for unexpected events to occur that could impact repayment.

Maturity Is Which of the Following