All FIs tend to mismatch the maturities of their assets and liabilities to some extent.

Name: All FIs tend to mismatch the maturities of their assets and liabilities to some extent.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

This is because FIs typically have longer-term assets, such as loans and investments, and shorter-term liabilities, such as deposits and borrowings. This can expose them to interest rate risk if interest rates change and affect the profitability of their operations.

All FIs Tend to Mismatch the Maturities of Their Assets