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Question
An increase in interest rates
A. increases the market value of the FI's financial assets and liabilities.
B. decreases the market value of the FI's financial assets and liabilities.
C. decreases the book value of the FI's financial assets and liabilities.
D. increases the book value of the FI's financial assets and liabilities.
E. has no impact on the market value of the FI's financial assets and liabilities.
Answer
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