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22) Assume a bank pays 1 % on $100 of money market deposit accounts/if they raise their rate to 3%, they can expect their balances
22) Assume a bank pays 1 % on $100 of money market deposit accounts/if they raise their rate to 3%, they can expect their balances to rise to $140. Calculate their marginal cost of funds. A) 3% D) 8% C) 4% B) 6% 23) A Repo transaction is made up of 2 components: a cash transaction, and a forward contract. The forward contract includes all the following except: A) loan repayment C) forward price B) loan origination D) settlement date 22) Assume a bank pays 1 % on $100 of money market deposit accounts/if they raise their rate to 3%, they can expect their balances to rise to $140. Calculate their marginal cost of funds. A) 3% D) 8% C) 4% B) 6% 23) A Repo transaction is made up of 2 components: a cash transaction, and a forward contract. The forward contract includes all the following except: A) loan repayment C) forward price B) loan origination D) settlement date
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