When bank lends long and borrows short the increase in

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"Because diversification is a desirable strategy for avoiding risk, it never makes sense for a bank to specialize in making specific types of loans". Is this statement true false or uncertain? Explain your answer

When bank lends long and borrows short, an increase in the interest rates will drive down the bank's profits". True or false? Explain.

Reference no: EM13393840

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