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BlackZzzverrR [31]
3 years ago
13

1. Suppose Bank One offers a risk-free interest rate of 5.5% on both savings and loans, and Bank Enn offers a risk-free interest

rate of 6% on both savings and loans. a. What arbitrage opportunity is available? b. Which bank would experience a surge in the demand for loans? Which bank would receive a surge in deposits? c. What would you expect to happen to the interest rates the two banks are offering?
Business
1 answer:
Nastasia [14]3 years ago
5 0

Answer:

Explanation:

A. Take a loan from Bank One at 5.5% and save the money in Bank Enn at 6%.

B. Bank One would experience a surge in the demand for loans, while Bank Enn would receive a

surge in deposits.

C. Bank One would increase the interest rate, and/or Bank Enn would decrease its rate.

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70/5% = 14 years

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The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transac
larisa [96]

Answer:

The answer is D.

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Value of cash received is :

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Now the credit side.

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So we have:

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3 years ago
____________ skills include the ability to perform tasks of a specific department or job, such as selling (marketing) or bookkee
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Present values Suppose going to college costs 20,000 a year. The average earnings of a highschool graduate are 20,000 a year. By
o-na [289]

Answer:

Annual benefit from college education (Increase in earnings) = $50,000 - $20,000 = $30,000

<em>Assuming 4 years of college study period</em>

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