Question
Which of the following statements is true about Depository institutions (DI)? A. If the average maturity of its assets is greater the average maturity of
Which of the following statements is true about Depository institutions (DI)? A. If the average maturity of its assets is greater the average maturity of its liabilities, liquidity risk increases and interest rate risk decreases if the market interest rate decreases B. None of the other listed options is correct C. If the difference between the average maturity of its assets is greater the average maturity of its liabilities, liquidity risk will decrease. D. If the difference between the average maturity of its assets is greater the average maturity of its liabilities, both liability and interest rate risk increases
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