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A Trust Company with a Portfolio of Mortgages Has a Positive

Question 94

Multiple Choice

A trust company with a portfolio of mortgages has a positive interest rate spread and interest rates are rising:


A) the net profit margin will fall.
B) the trust company will be able to maintain the same interest rate spread.
C) the net interest margin will rise.
D) there will be no net effect on profits.

Correct Answer:

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