The portfolio of a bank that contains assets and liabilities that are relatively illiquid and held for longer holding periods

Question

Quizplus · Accepted Answer

The portfolio that contains relatively illiquid assets and liabilities held for longer holding periods is the investment portfolio. This portfolio is usually managed with the goal of generating long-term returns rather than short-term profits. It can include a range of assets from bonds and stocks to real estate and private equity. Since the assets in the investment portfolio are held for longer periods, they can be subject to fluctuations in value that may affect the bank's overall profitability.

The Portfolio of a Bank That Contains Assets and Liabilities