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Question
A thrift makes long-term fixed-rate mortgages funded with short-term deposits and then interest rates rise. Which of the following is true?
A. Profitability would decline.
B. Profitability would increase.
C. The market value of equity increases.
D. Interest income would fall.
E. Both B and C would occur.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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