Question: In the problem above, what risk does a bank have if interest rates increase? a . No risk. Banks hedge for interest rate risk. b

In the problem above, what risk does a bank have if interest rates increase?
a. No risk. Banks hedge for interest rate risk.
b. Solvency risk
c. Liquidity risk
d. The value of the bank's equity will decline.
e. The value of the bank's equity will increase.
In the problem above, what risk does a bank have

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