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    Financial Institutions Management
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    Exam 7: Risks of Financial Institutions
  5. Question
    If an FI Holds Long-Term Assets Funded by Short-Term Liabilities
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If an FI Holds Long-Term Assets Funded by Short-Term Liabilities

Question 22

Question 22

True/False

If an FI holds long-term assets funded by short-term liabilities when interest rates rise, the market value of assets will fall by a greater amount than the market value of its liabilities.

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