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tia_tia [17]
3 years ago
7

Suppose Big Bank offers an interest rate of 8.5​% on both savings and​ loans, and Bank A offers an interest rate of 9.0​% on bot

h savings and loans. a. What profit opportunity is​ available?
Business
1 answer:
lianna [129]3 years ago
4 0

Answer:

C) Take a loan from big bank at 8.5% and save the money in Bank A at 9.0%

Explanation:

If you take a loan from Big Bank at 8.5%, and then deposit that money into Bank A in order to receive 9% interest rate, you will be earning 0.5%. This is a form of arbitrage, since you are simultaneously obtaining a "cheap" loan and immediately depositing the money at another bank that pays a higher interest rate.

Arbitrage is a type of trading, usually involves trading securities and commodities, and is basically represents earning money on market inefficiencies. Some argue that arbitrage is the base of all types of trading, but the difference is that arbitrage would be the most efficient type of trading. If you buy a stock and hold it for a certain period, that qualify as arbitrage, but if you buy and sell the same stock simultaneously and make a profit out of it, then that is arbitrage but it is also being a very efficient trader.

In this case, you could actually be making money without investing a cent.

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The Operations Manager at Freightliner Trucks orders truck batteries which cost $100 each. Freightliner uses an average of 12,50
Anastasy [175]

Answer:

Calcium carbonate reacts w/stomach acid according to the following chemical equation.

CaCO3+2HCl(aq)-> CaCl2(aq)+H2O(l)+CO2(g)

3 0
3 years ago
f interest rates rise but the quantity of loanable funds demanded and supplies remains constant, this implies that Group of answ
babymother [125]

Answer:

The demand and the supply of loanable funds both remained the same.

Explanation:

If the interest rates rise, but both demand and supply of loanable funds remanin constant, this means that demand and supply remained the same.

This would be a problem in the real world, because when interest rates rise, what should happen is that the supply of funds rise, while demand falls, because a rise in interest rates makes investment more expensive since interset rates are simply the price of the loanable funds.

3 0
3 years ago
The study of economics:
DochEvi [55]
Helpful to businesses, but not particularly helpful in making personal buying decisions.
6 0
3 years ago
The evolutionary development of the species H. sapiens a. is determined solely by environmental factors b. is a Mendelian trait
IRISSAK [1]

Answer:

The correct answer is letter "C": is the result of both genetic and environmental factors.

Explanation:

There have been several studies about human evolution as a species. It is inevitable to relate this topic to the prominent findings of Charles Darwin (1809-1882) in his book "<em>On the Origin of Species by Means of Natural Selection, or the Preservation of Favoured Races in the Struggle for Life</em>" or simply known as the <em>Origin of species</em>. Mainly, Darwin sustained that, in general, <em>species' evolution happens thanks to environmental adaptations that are transmitted from one generation of a species to another in their genetics.</em>

7 0
3 years ago
Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An examp
scoray [572]

Answer:

<u>Real Property </u>

Explanation:

Capital markets refer to the market which trades in long term securities whose maturity is more than an year.  The instruments traded in capital markets are usually stocks and bonds.

In private equity real estate, public and private investments are pooled together and invested in the real estate property markets. So here the underlying asset whose price fluctuates is property. If property prices soar, the investors stand to gain.

This kind of investment involves high risk but is also capable of generating a higher return as greater the risk involved, greater the return.

3 0
3 years ago
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