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Assume an FI has $50 000 in assets and $45 000 in liabilities. Which of the following statements is true if interest rates on both
Assume an FI has $50 000 in assets and $45 000 in liabilities. Which of the following statements is true if interest rates on both assets and liabilities increase simultaneously? Select one: O a. As the interest rate for both assets and liabilities increase the value of the FI's net worth will remain constant. O b. As the interest rate for both assets and liabilities increase the value of the FI's assets and liabilities will both decrease. O c. As the interest rate for both assets and liabilities increase the value of the Fl's assets and liabilities will both increase. O d. As the interest rate for both assets and liabilities increase the value of the FI's assets and liabilities will both increase; however, as the FlI has more assets than liabilities, the increase in the value of the FI's assets will be greater than the increase in the value of its liabilities
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