Question
Which of the following financial institutions is likely to have portfolios of loans with some of the longest maturities? Why? Multiple Choice A. Savings and
Which of the following financial institutions is likely to have portfolios of loans with some of the longest maturities? Why? Multiple Choice
A. Savings and loan institutions. They are required to lend a majority of their deposits for home mortgages.
B. Money market funds. They invest in long-term foreign corporate bonds and long-term mortgages.
C. Credit unions. They lend the largest proportion of their money for mortgages among all financial institutions and also seek out the riskiest borrowers for greatest return.
D. Commercial banks. They only lend money for home mortgages that have long maturities.
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