Question

The conversion of short-term liabilities into long-term assets is called a. an asset bubble. b. a shadow bank. c. maturity transformation. d. financial contagion. e. financial panic.

   The conversion of short-term liabilities into long-term assets is called
a. an asset bubble.
b. a shadow bank.
c. maturity transformation.
d. financial contagion.
e. financial panic.

Macroeconomics in Modules

Macroeconomics in Modules

Paul Krugman, Robin… 3rd Edition

Chapter 12, Problem 2

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The question describes a financial process where short-term liabilities (debts or obligations that are due within a short period, typically less than a year) are converted into long-term assets (assets that are held for a longer period, typically more than a Show more…

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The conversion of short-term liabilities into long-term assets is called a. an asset bubble. b. a shadow bank. c. maturity transformation. d. financial contagion. e. financial panic.

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