After Interest Rate and Yield Curve Changes,a Bank's Market Value

question 33

Multiple Choice

After interest rate and yield curve changes,a bank's market value of assets increased $4 million and the market value of its liabilities fell $6 million. The book value of equity ________ and the market value of equity ________.

• A)increased $2 million; was unchanged
• B)fell $2 million; was unchanged
• C)was unchanged; fell $2 million
• D)was unchanged; fell $10 million
• E)was unchanged; increased $10 million

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