A financial institution has assets with longer duration than its corresponding liabilities. Which of the following statements is correct?

A. An increase in interest rates will decrease insolvency risk. While the value of both assets and liabilities will go down, the value of the liabilities will be more affected.

B. A decrease in interest rates will increase insolvency risk. While the value of both assets and liabilities will go up, the value of the liabilities will be more affected.

C. An increase in interest rates will increase insolvency risk. While the value of both assets and liabilities will go down, the value of the assets will be more affected.

D. None of the above.