One investment maturity strategy,called the front-end loaded policy,requires that the bank put all of its investment portfolio in long-term securities.

Question

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The front-end loaded policy actually requires that the bank put all of its investment portfolio in short-term securities, not long-term securities. This strategy seeks to earn higher yields by investing in short-term securities with higher interest rates and then continuously rolling over those investments.

One Investment Maturity Strategy,called the Front-End Loaded Policy,requires That the Bank