menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Financial Institutions Management
  4. Exam
    Exam 8: Interest Rate Risk I
  5. Question
    The Market Value of a Fixed-Rate Liability Will Decrease as Interest
Solved

The Market Value of a Fixed-Rate Liability Will Decrease as Interest

Question 5

Question 5

True/False

The market value of a fixed-rate liability will decrease as interest rates rise, just as the market value of a fixed-rate asset will decrease as interest rates rise.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: The repricing model incorporates cash flow effects

Q2: If the average maturity of assets is

Q3: The yield curve<br>A)relates rates for different maturities

Q4: What is the change in the value

Q6: One reason to include demand deposits when

Q7: What is market value of the one-year

Q8: The market segmentation theory of the term

Q9: Which theory of term structure posits that

Q10: The change in economic value of a

Q11: A bank that finances long-term fixed-rate mortgages

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines