A Savings and Loan Has Extremely Long-Term Assets That Are

question 46

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 B and D.

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Definitions:

Two-Position

A type of control or device that has two distinct settings or positions, such as "on/off" or "open/closed."

Selector Switch

A switch that allows the user to select among multiple positions or modes, often found on control panels for machinery.

Control Circuit Rung

A section or level within a control circuit diagram, often represented as horizontal lines that show the flow of electrical control signals.

Reversing Motor Starter

A device that allows the control of an electric motor's direction of rotation, enabling it to run both forward and backward.