Most loans and deposits in the interbank market have a maturity of:
A.
More than 10 years
B.
More than 5 years but less than 10 years
C.
More than 3 years but less than 5 years
D.
Less than one year
The Answer Is:
D
This question includes an explanation.
Explanation:
Most loans and deposits in the interbank market have a maturity of less than one year. This short-term nature is due to the need for liquidity and flexibility among banks, allowing them to manage their short-term funding requirements and respond to changes in interest rates and market conditions effectively.
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