8. Any Bank obtains deposits and issues loans in purely competitive markets where rD = 5 percent and rL = 10 percent.

(a) . Use a graph to illustrate how Any Bank determines the profit-maximizing level of deposits.

(b) . Use a graph to show what would happen to Any Bank’s profit-maximizing level of deposits if the interest rate on de¬ posits increased to 7 percent.

(c) . Use a graph to show what would hap¬ pen to Any Bank’s profit-maximizing level of deposits if the market interest rate on loans increased to 13 percent.