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A thrift makes long-term fixed-rate mortgages funded with short-term deposits and then interest rates rise. Which of the following is true? Profitability would decline Profitability

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A thrift makes long-term fixed-rate mortgages funded with short-term deposits and then interest rates rise. Which of the following is true? Profitability would decline Profitability and market value of equity increase The market value of equity increases Interest income would fall Profitability would increase

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