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Rising Interest Rates Can Create Profit Problems for Banks Because

Question 161

Multiple Choice

Rising interest rates can create profit problems for banks because


A) short-term rates rise faster than long-term rates
B) bank deposits turn over more rapidly than bank loans
C) banks can't lend out money at these higher rates
D) long-term rates rise faster than short-term rates
E) borrowers must pay more in taxes as interest rates rise

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