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 falling interest rates will increase the value of its equity; and rising interest rates will decrease the value of its equity.

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Definitions:

Chesapeake Gentry

Refers to the affluent, land-owning class in the Chesapeake Bay region during the colonial and early United States periods, characterized by their plantation economy and reliance on indentured servants and slaves.

Scottish Settler

An individual from Scotland who relocates to another country, often in the context of historical migrations.

General Burgoyne's

Refers to British General John Burgoyne, who is best known for his role in the American Revolutionary War, particularly the 1777 Saratoga campaign which ended in a decisive defeat for his forces.

Battle Of Saratoga

A pivotal series of engagements in 1777 during the American Revolutionary War that resulted in a significant American victory over British forces, influencing international support for the American cause.