Last year, Myron purchased a $10,000 certificate of deposit with a 3% rate of interest from his bank. The government reported th

Question

3 years ago

5

Last year, Myron purchased a $10,000 certificate of deposit with a 3% rate of interest from his bank. The government reported th

at prices, on average, have fallen by 5% during the current year. Which of the following can be concluded as a result of this transaction?
Myron loses, while the bank gains.

Myron gains, while the bank remains unaffected.

Myron gains, while the bank loses.

Business

1 answer:

Dmitrij [34] · Answer 1 · 2022-08-19T06:01:05+03:00

Answer:

Myron gains, while the bank loses.

Explanation:

Fallen in prices is usually cause by deflation i.e a general decrease in the prices of goods and services which enhances the purchasing power of money.

In this case, 5% fall in price will increase the value of the Myron investment with bank and caused bank more money .