Maturity transformation is converting _____ liabilities into _____ assets.
A)short-term; long-term
B)short-term; short-term
C)long-term; long-term
D)long-term; short-term

Question

Quizplus · Accepted Answer

Maturity transformation involves converting short-term liabilities, like deposits, into long-term assets, like loans, which is a common practice in banking to manage liquidity and interest rate risks.

Maturity Transformation Is Converting _____ Liabilities into _____ Assets

Maturity Transformation Is Converting _ Liabilities into _ Assets