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

Answer: Option B

Solution(By Examveda Team)

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.