Multiple Choice
A decrease in interest rates means that the discount rate on cash flows is:
A) decreased and thus the market value of an FI's assets and liabilities decreases.
B) increased and thus the market value of an FI's assets and liabilities decreases.
C) increased and thus the market value of an FI's assets and liabilities increases.
D) decreased and thus the market value of an FI's assets and liabilities increases.
Correct Answer:
Verified
Correct Answer:
Verified
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