What happens to the market value of the bank's liabilities if the interest rate falls by 2

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What happens to the market value of the bank's liabilities if the interest rate falls by 2 percentage points?

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The Economics Of Money Banking And Financial Markets

ISBN: 9780321584717

4th Canadian Edition

Authors: Frederic S. Mishkin, Apostolos Serletis

Question Posted: Oct 18, 2023 03:03 AM

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What happens to the market value of the bank's liabilities if the interest rate falls by 2

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When the interest rate falls by 2 percentage points the market value of a banks liabilities typically increases This is due to the inverse relationshi...View the full answer

The Economics Of Money Banking And Financial Markets

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