Author Question: One of the risks of maturity transformation is that: A) it can increase the rate of inflation. B) ... (Read 126 times)

anjilletteb

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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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Answer to Question 1

C

Answer to Question 2

A



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