1.what is NOT a reasonable way to think of the relation between perpetuity and annuity? ( Single Choice)

Answer 1: an annuity is the difference btw two perpetuities

Answer 2: an annuity is the sum of two perpetuities

Answer 3: an annuity is a "finite" perpetuity

2. what determines the interest rate a bank offers to its depositors? ( Multiple Choice)

Answer 1: fed's target fund rate (i.e., the interest rate set by fed = bank overnight borrowing rate)

Answer 2: bank's wish to attract more capital

Answer 3: competition from other banks

Answer 4: the depositor's FICO score

Answer 5: the depositor's wealth