Q11
Which of the following statements is not correct:
A.
The rising interest rate increases the discount rate on cash flows and decreases the market value of that Asset
B.
Falling interest rates decrease the market value of Assets or Liabilities
AnswerC.
When a Bank holds longer term assets than liabilities and if interest rate rises, the market value of Assets falls by more amount than liabilities
D.
The above C may lead to economic loss
Answer: Option B
Solution
Answer: Option B
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