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A bank offers one-year loans with a 11 percent stated rate, charges a 0.2 percent loan origination foc, imposes a 11 percent a compensating balance

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A bank offers one-year loans with a 11 percent stated rate, charges a 0.2 percent loan origination foc, imposes a 11 percent a compensating balance requirement, and must pay a 14 percent reserve requirement to the Federal Reserve. What is the return to the bank on these loans? urse mation 15.8% 14.8% 11.6% 10.4%

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