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Bank X has $10 billion dollars of thirty year mortgages as assets and $8 billion of FDIC insured deposits with an average maturity of 1

Bank X has $10 billion dollars of thirty year mortgages as assets and $8 billion of FDIC insured deposits with an average maturity of 1 month. If the yield on thirty year mortgages increases by 150 basis points and the increase in deposit rates increase by 50 basis points the net worth of the bank will:

Decrease

First increase and then decrease

Increase

Remain the same

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