Which of the following is a way in which banks can equalize the time to maturity of their assets and liabilities?
A)Securitization
B)Quantitative easing
C)Privatization
D)Credit easing

Question

Which of the following is a way in which banks can equalize the time to maturity of their assets and liabilities?​
A)​Securitization
B)​Quantitative easing
C)​Privatization
D)​Credit easing

Quizplus · Accepted Answer

Securitization involves converting illiquid assets into securities that can be traded, which allows banks to sell off longer-term assets and replace them with shorter-term liabilities, thus equalizing the time to maturity of their assets and liabilities. Quantitative easing, credit easing, and privatization do not address the issue of mismatched maturities between assets and liabilities.

Which of the Following Is a Way in Which Banks