If an FI Holds Long-Term Assets Funded by Short-Term Liabilities

question 22

True/False

If an FI holds long-term assets funded by short-term liabilities when interest rates rise, the market value of assets will fall by a greater amount than the market value of its liabilities.

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Definitions:

Intuiting

The process of understanding or knowing something immediately without the need for conscious reasoning.

Imagining

The action of forming new ideas or images not present to the senses, using the mind.

Personal Conscious

The part of an individual's consciousness that consists of perceptions, thoughts, and feelings that are directly accessible to them.

Core Pattern

Fundamental and recurring behaviors, thoughts, or emotional responses that are central to an individual's personality or typical reactions.