Suppose that you and your friends all have savings accounts which require you  to give 6 months' notice before you make a withdrawal. Your bank lends me money and requires that I repay it in 2 years' time. What is the process called? a) Risk transformation  b) Wholesale banking c) Transmission of funds  d) Maturity transformation

Economics Today and Tomorrow, Student Edition
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ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section: Chapter Questions
Problem 25AA
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Suppose that you and your friends all have savings accounts which require you  to give 6 months' notice before you make a withdrawal. Your bank lends me money and requires that I repay it in 2 years' time. What is the process called?

a) Risk transformation 

b) Wholesale banking

c) Transmission of funds 

d) Maturity transformation

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