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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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If the economy's real GDP doubles in 9 years, we can conclude that its average annual rate of growth is 8%.

<h3>How can we determine average annual rate of growth?</h3>

The rule of 72 can be used to determine when the real GDP of an economy would double. In order to determine the doubling time, divide 72 by average annual rate of growth.

average annual rate of growth = 72 / average annual rate of growth

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To learn more about  real GDP, please check: brainly.com/question/15225458

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1 year ago
Sonya showed the office manager at Arunden Solutions how he could pay for the new copier she was selling by bringing more of Aru
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3 years ago
Claudia is hired as a Senior Engineer by Hexagon Inc. Allen, the HR Manager of the company, promises her that she will start wor
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d. Hexagon Inc. cannot be challenged in a court even when it fails to follow up on its promises.

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What do safeguarding devices do to protect the worker?
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Answer:

Answer: Prevent contact:

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]The safeguard must prevent hands, arms, and any other part of a worker's body from making contact with dangerous moving parts. A good safeguarding system eliminates the possibility of the operator or another worker placing parts of their bodies near hazardous moving parts.

8 0
3 years ago
On January 1, Year 1, the Mahoney Company borrowed $164,000 cash from Sun Bank by issuing a five-year 8% term note. The principa
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Principal payment =  $27,505.00  

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