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A bank makes a loan to a family to buy a house. After the fixed rate loan has been made, prevailing rates increase. Which of

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A bank makes a loan to a family to buy a house. After the fixed rate loan has been made, prevailing rates increase. Which of the following is true? This is good for the bank and bad for the borrower This is good for the family and bad for the bank This makes no difference because it is a fixed rate loan Increased rates hurt both the family and the bank

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