Rising Interest Rates Can Create Profit Problems for Banks Because

question 110

Multiple Choice

Rising interest rates can create profit problems for banks because

• A)short-term rates rise faster than long-term rates
• B)bank deposits turn over more rapidly than bank loans
• C)banks can't lend out money at these higher rates
• D)long-term rates rise faster than short-term rates
• E)borrowers must pay more in taxes as interest rates rise

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