Assets Amount Annual Liabilities (5 millions) Rate 2-year loans $40 8 % 3-year CD 3-year loans $60 5-year term deposit E

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Assets Amount Annual Liabilities 5 Millions Rate 2 Year Loans 40 8 3 Year Cd 3 Year Loans 60 5 Year Term Deposit E 1 (61.09 KiB) Viewed 37 times

Select one:
A.
Interest rate increases because the value of its assets will
fall more than its liabilities.
B.
Interest rate decreases because the value of its assets will
fall more than its liabilities.
C.
Interest rate increases because the value of its assets will
rise more than its liabilities.
D.
Interest rate increases because the value of its assets will
fall less than its liabilities.
E.
Interest rate decreases because the value of its assets will
rise less than its liabilities.
Assets Amount Annual Liabilities (5 millions) Rate 2-year loans $40 8 % 3-year CD 3-year loans $60 5-year term deposit Equity Total $100 Total Amount Annual ($ millions) Rate $60 7% $30 6% $10 $100 8 %