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Financial institutions such as commercial banks, bond mutual funds, insurance companies, and pension funds maintain large portfolios of bonds, so their portfolios are ____ affected
Financial institutions such as commercial banks, bond mutual funds, insurance companies, and pension funds maintain large portfolios of bonds, so their portfolios are ____ affected when the Fed ____ interest rates.
a. | adversely; decreases | |
b. | favorably; does not change | |
c. | adversely; does not change | |
d. | favorably; decreases |
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