Money Markets & Monetary Policy

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66. The term “maturity mismatch” refers to a situation where:
a. The maturity of a bank’s assets is longer than the maturity of its liabilities
b. The maturity of a bank’s assets is shorter than the maturity of its liabilities
c. The maturity of a government bond is longer than the maturity of a corporate bond
d. The maturity of a short-term loan is longer than the maturity of a long-term loan

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67. The term “credit rating” refers to:
a. A measure of a country’s monetary policy effectiveness
b. A measure of a bank’s profitability
c. An assessment of a borrower’s creditworthiness
d. An assessment of a company’s stock market performance

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68. The term “interest rate swap” refers to:
a. An agreement between two parties to exchange interest payments on loans
b. An agreement between a bank and the central bank to swap reserves
c. An agreement between a government and a commercial bank to swap securities
d. An agreement between two countries to swap currencies

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69. The term “repo market” refers to a market where:
a. Government securities are traded between banks and the central bank
b. Stocks are traded between investors and brokers
c. Foreign currencies are traded between central banks
d. Commodities are traded between producers and consumers

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70. The term “capital control” refers to:
a. Measures taken by the central bank to restrict capital outflows from the country
b. Measures taken by the government to regulate bank capital requirements
c. Measures taken by commercial banks to limit credit issuance
d. Measures taken by the stock exchange to control stock market volatility

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