Bank assets tend to have ________ maturities and ________ liquidity than/as bank liabilities.

Question

Quizplus · Accepted Answer

Bank assets tend to have longer maturities than bank liabilities because they are often loans that have longer repayment schedules. However, they also tend to have lower liquidity because it may be difficult to quickly convert loans into cash. On the other hand, bank liabilities, such as deposits, tend to have shorter maturities and greater liquidity because depositors can easily withdraw their money.

Bank Assets Tend to Have ________ Maturities and ________ Liquidity

Bank Assets Tend to Have Maturities and Liquidity