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Author Question: One of the risks of maturity transformation is that: A) it can increase the rate of inflation. B) ... (Read 84 times)

anjilletteb

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on: Jun 30, 2018
One of the risks of maturity transformation is that:
 
  A) it can increase the rate of inflation. B) it reduces the profitability of banks.
  C) it can lead to bank runs. D) it discourages savings.

Question 2

The market prices of existing bonds are
 
  A) inversely related to the interest rate. B) stated in terms of the interest rate.
  C) not related to the interest rate. D) directly related to the interest rate.


maaaaaaaaaa

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


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