After Interest Rate and Yield Curve Changes,a Bank's Market Value

question 33

Multiple Choice

After interest rate and yield curve changes,a bank's market value of assets increased $4 million and the market value of its liabilities fell $6 million. The book value of equity ________ and the market value of equity ________.

• A)increased $2 million; was unchanged
• B)fell $2 million; was unchanged
• C)was unchanged; fell $2 million
• D)was unchanged; fell $10 million
• E)was unchanged; increased $10 million

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Definitions:

Eastern Territories

Refers to regions or areas situated to the east of a specific point or within the eastern part of a country or continent.

Statehood

The condition or status of being recognized as an independent nation with its own government and boundaries.

Frederick Jackson Turner

An American historian best known for his "Frontier Thesis," which argued that the American democracy was formed by the American frontier.

Historian

A scholar who studies and writes about the past, critically examining and interpreting historical events, contexts, and narratives.