Suppose interest rates on residential mortgages of equal risk are 5.5% in California and 7.0% in New York. Could this differential persist? What forces might tend to equalize rates? Would differentials in borrowing costs for businesses of equal risk located in California and New York be more or less likely to exist than differentials in residential mortgage rates? Would differentials in the cost of money for New York and California firms be more likely to exist if the firms being compared were very large or if they were very small? What are the implications of all of this with respect to nationwide branching?

Choose the best example of an indirect confrontation for the following situation: peter, a local school board member hired john whom owns a local print shop to make custom t-shirts for his son's basketball team, the ravens. they are about to play their final game of the year and are having a party to celebrate their semi-finalist rankings. unfortunately, the printer made a mistake and printed on red/blue shirts instead of black/blue which are the team's actual colors. peter explains to john that the team's colors are black/blue instead of red/blue and asks john what he thinks they should do. peter explains to john that the team's colors are black/blue and demands that john re-print the shirts on the correct colors. peter agrees to take the red/blue shirts but then posts a negative yelp review on john's business. peter agrees to take the red/blue shirts but tells everyone he can in the school about the incident and tells them not to buy from john. peter rejects the shirts and files a lawsuit to attempt to recover the down payment he made to john.