Herb lives in Calgary. When it was time to shop for the best interest rate on a

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Herb lives in Calgary. When it was time to shop for the best interest rate on a mortgage, Herb checked out interest rates at all of the major lending institutions. Just to be on the safe side, for every lending institution, Herb checked the interest rates available at a branch in Toronto with the rate available at branches in Calgary. He found that in every case the interest rates were identical. Explain why Herb should have known this.
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Macroeconomics

ISBN: 978-0321675606

6th Canadian Edition

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone

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