Risk of financial institutions which states mismatching assets maturities and liabilities maturities is classified as
A
selling intermediation
B
maturity intermediation
C
direct intermediation
D
indirect intermediation
Correct Answer: maturity intermediation
Risk of financial institutions which states mismatching assets maturities and liabilities maturities is classified as maturity intermediation. Maturity intermediation is an investment term that describes a bank's long-term lending on funds borrowed for a short-term investment.