Examveda
Examveda

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

C. 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


This Question Belongs to Commerce >> Banking And Financial Institutions

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