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A Bank That Has Long-Term Mortgages Funded with Short-Tern Floating

Question 10

Multiple Choice

A bank that has long-term mortgages funded with short-tern floating rate deposits, all other factors remaining constant, will experience ___________when interest rates go down.


A) an increase in interest income
B) a decrease in interest income
C) no change in interest income
D) an increase in capital gain

Correct Answer:

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