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Interest-Rate Risk is a crucial issue in bank management. a. What are the implications to bank management when interest rates are rising? Explain with examples.

Interest-Rate Risk is a crucial issue in bank management.

a. What are the implications to bank management when interest rates are rising? Explain with examples.

b. What are the implications to bank management when interest rates are falling? Explain with examples.

c. What role does asset transformation play in managing a profitable bank? Explain with examples.

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