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Which of the following statements correctly describes the Asset-liability mismatch phenomenon during the credit crisis of 2007-2008?
A
Asset-liability maturity mismatch refers to the purchase of short-term assets through short-term financing
B
Banks use commercial paper and long-term bonds to finance the purchase of long-term assets.
C
Use short-term repurchase agreements, or commercial paper for financing long-term assets.
D
Management of asset-liability maturity mismatch does not face funding liquidity risk.