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A bank that finances short term loans with long term bonds is exposed to decrease in net interest income and increase in the market value
A bank that finances short term loans with long term bonds is exposed to decrease in net interest income and increase in the market value of equity when interest rates increase. increase in net interest income and increase in the market value of equity when interest rates decrease. decrease in net interest income and increase in the market value of equity when interest rates decrease. decrease in net interest income and decrease in the market value of equity when interest rates decrease. decrease in net interest income and decrease in the market value of equity when interest rates increase
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