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: Increases and the

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:

Increases and the value of its liabilities decreases

Increases by more than the value of its liabilities

Decreases and the value of its liabilities increases

Will decrease by more than the value of its liabilities

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