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