Answered: The average maturity of its assets is…

The average maturity of its assets is larger than that of its deposits, as is typical of most banks. There is a (a)reinvestment risk (b)re-finance risk (c)re-pricing risk (d)default risk

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 3MCQ

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Question

The average maturity of its assets is larger than that of its deposits, as is typical of most banks. There is a

(a)reinvestment risk

(b)re-finance risk

(c)re-pricing risk

(d)default risk

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