When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as

Name: When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

Interest rate risk arises when there is a mismatch in the maturities of assets and liabilities, which affects the financial intermediary's net interest income and economic value due to changes in interest rates.

When Maturities of Liabilities and Assets Are Mismatched and Risk