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Business, 02.10.2019 00:00 painespeach1849

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?

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