Which of the Following Statements Is True

question 73

Multiple Choice

Which of the following statements is true?

• A)An increase in interest rates will benefit the FI since the increase in the market value of assets will be greater than the increase in the market value of liabilities.
• B)An increase in interest rates will harm the FI since the increase in the market value of assets will be greater than the increase in the market value of liabilities.
• C)An increase in interest rates will harm the FI since the decrease in the market value of assets will be greater than the decrease in the market value of liabilities.
• D)A decrease in interest rates will harm the FI since the increase in the market value of assets will be greater than the increase in the market value of liabilities.
• E)A decrease in interest rates will benefit the FI since the increase in the market value of assets will be smaller than the increase in the market value of liabilities.

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Definitions:

Batting Cages

Enclosed areas for baseball or softball players to practice batting.

Gain Or Loss

Gain or loss refers to the financial outcome resulting from the sale of an asset or investment, calculated as the difference between the sale price and the original purchase price.

Accumulated Depletion

The total reduction in value of a natural resource as it is extracted or used over time.

Mineral Deposit

A concentration of naturally occurring material from the earth's crust that can be extracted and processed profitably.