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When interest rates rise, banks tend to incur equity losses when they have invested heavily in long - term Treasury securities . when mos t

When interest rates rise, banks tend to incur equity losses
when they have invested heavily in long-term Treasury securities.
when most of their Treasury security holdings have short terms to maturity.
because they tend to finance short-term assets with long-term debt.
because the duration of their liabilities tends to exceed the duration of their assets.
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