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

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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