An Increase in Interest Rates Means That the Discount Rate

question 34

Multiple Choice

An increase in interest rates means that the discount rate on cash flows is:

• A)decreased and thus the market value of an FI's assets and liabilities decreases
• B)increased and thus the market value of an FI's assets and liabilities decreases
• C)increased and thus the market value of an FI's assets and liabilities increases
• D)decreased and thus the market value of an FI's assets and liabilities increases

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