?
When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as
Answer & Solution
Correct Answer:
Option
A
When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as interest rate risk. The interest rate risk, or market risk, refers to the chance that investments in bonds also known as fixed-income securities will suffer as the result of unexpected interest rate changes.
Join the Discussion
Login to post a comment or share your explanation.
Login