Small bank liabilities are long-term

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If a small bank's liabilities are long-term while its assets are short-term, when interest rates rise the value of the bank's assets:

A) increases by more than the value of its liabilities

B) will decrease by more than the value of its liabilities

C) increases and the value of its liabilities decreases

D) decreases and the value of its liabilities increases

Reference no: EM131112486

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