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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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i am a troll im here just to mess with people after i do this i with go on my main account and answer you question

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2 years ago
In cultures that are high in uncertainty avoidance,————-
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Culture is known to be the way of life of people in a particular place. In cultures that are high in uncertainty avoidance is one where orderliness, consistency, and structure are important.

  • Uncertainty avoidance is simply known as the way cultures socialize its people or members to feel in uncertain, novel, surprising, or in surprise situations.

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6 0
2 years ago
In terms of dollars, the marginal benefit of working five days a week instead of four days a week is A) the wages received for 4
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Answer:

B) the wages received for the fifth day of work.

Explanation:

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The answer is alternative B)

7 0
3 years ago
Pat shopped at Target for new summer shorts. After trying on three different brands and price comparing, he decided to buy the D
Vitek1552 [10]

Answer:

Shopping and convenience

Explanation:

Pat shopped at Target for new summer shorts. After trying on three different brands and price comparing, he decided to buy the Dockers shorts. While heading to the checkout stand, he spotted earphones hanging on the endcap of the electronics area. Remembering he needed new earbuds for his iPod, he grabbed a set and paid for it all at the checkout counter. What types of product categories did Pat experience in this shopping trip

Pat experience shopping and convenience product categories; the dockers shorts is the shopping product while the ear phone is the convenience product.

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5 0
3 years ago
Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the
dimaraw [331]

Answer:

D : All options are correct

Explanation:

- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.

- @ Q = 500 units,    Selling Price is set at SP = $35

- @ Q = 500 units,    Buying Price is set at BP = $40

- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.

- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.

- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.

6 0
3 years ago
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