Why must banks have a portfolio of assets and liabilities on its balance sheet to enable them

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Why must banks have a portfolio of assets and liabilities on its balance sheet to enable them to manage risk? If banks commit to a large proportion of short-term lending, how might this affect its long-term security?

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Economics

ISBN: 9781473768543

5th Edition

Authors: Gregory Mankiw, Mark P. Taylor

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Question Posted: Apr 26, 2024 02:01 AM

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Why must banks have a portfolio of assets and liabilities on its balance sheet to enable them

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Answer Banks must have a portfolio of assets and liabilities on their balance sheet to enable them to manage risk effectively By holding a diversified ...View the full answer

Economics

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