Question: 2) Given your answer to Question 1, what is the resulting interest rate risk impact on the net worth (capital adequacy) of a depository institution

2) Given your answer to Question 1, what is the resulting interest rate risk impact on the net worth (capital adequacy) of a depository institution in a rising interest rate environment? (i.e. In a rising interest rate environment, is the net worth of the institution likely to rise,fall, or stay the same and why?) (6 points)
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