A Savings and Loan Has Extremely Long-Term Assets That Are

question 57

Multiple Choice

A savings and loan has extremely long-term assets that are currently matched against extremely short-term liabilities.For this S&L:

• A)Falling interest rates will decrease the value of its equity.
• B)Falling interest rates will increase the value of its equity.
• C)Rising interest rates will increase the value of its equity.
• D)Rising interest rates will decrease the value of its equity.
• E)Both B and D.