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Assume you are the assistant manager of a depository financial institution that holds marketable assets (loans and securities) and liabilities (deposits of various maturities). If

Assume you are the assistant manager of a depository financial institution that holds marketable assets (loans and securities) and liabilities (deposits of various maturities). If you anticipate that interest rates will rise rapidly, over the next six months, describe and justify the portfolio adjustments you would recommend to your manager. Next, respond to and evaluate the recommendations made by a classmate as if you are the bank manager.

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