Question: A banks assets tend to be long-term while its liabilities are short-term. Therefore, when interest rates rise, the value of the banks assets: Will decrease

A banks assets tend to be long-term while its liabilities are short-term. Therefore, when interest rates rise, the value of the banks assets:

Will decrease by more than the value of its liabilities

Increases by more than the value of its liabilities

Decreases and the value of its liabilities increases

Increases and the value of its liabilities decreases

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