Posted by sam on .
Asset-liability management is the term where the maturity of an asset is similar to the time that the liability expires. Which of the following is not good asset-liability matching?
-Brand new quality car financed by a 5-year loan.
-Retirement fund for a 35-year old containing commercial real estate.
-Loan from a commercial bank to a corporate account for working capital funded by the bank's retail checking accounts (consumer's deposits in checking accounts).
-re-financing a credit card, exclusively used for grocery purchases in the amount of $1,431.49, by taking out a second mortgage on the consumer's home.
-used car purchase financed by a 3-year car loan.