1) Bank A offers 2% interest on savings and charges 5% interest on loans. Unfortunately, a borrower advanced a loan of 100 has defaulted. How many similar loans to "good" borrowers must the bank lend out to just about recover the lost money?

Select one:

a. 50

b. 20

c. 33

d. 1

2) Which of the following is true

a. The true value of an investor is the not their expertise but their money

b. Banks seek long term capital gain from their loans to new ventures

c. Government grants on equipment are paid over before purchase

d. Government grant funding provides legitimacy and leverage to new

ventures seeking finance

e. Business angels prefer long term loans to equity capital investments