Question
A commercial bank has funds on deposit with a central bank which has set a negative interest rate. The interest rate is minus 2.3 per
A commercial bank has funds on deposit with a central bank which has set a negative interest rate. The interest rate is minus 2.3 per cent. If the bank has a $500 million deposit lodged at that rate and makes no other transactions, which of the following figures is closest to its account balance after one year?
A. $485m
B: $499m
C: $489m
D: $497m
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Using Econometrics A Practical Guide
Authors: A. H. Studenmund
7th edition
013418274X, 978-0134182742
