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.

Question $10$ options:

a$)$

unfavorably; decreases

b$)$

unfavorably; increases

c$)$

favorably; increases

d$)$

unfavorably; decreases AND favorably; increase