Now suppose there is bank in the above economy. The bank provides loans to firms and keeps information secret. At t-2 the bank is liquidated and consumers who have deposits with the bank get back what the bank owns at t-2 The bank offers the early consumer the following demand deposit contract. If the early consumer deposits $100 at t-0, he can withdraw $100 at t- The bank offers the late consumer the following contract. If he deposits $100 at t-1, he gets back the loan that the firm repays to the bank since the bank is liquidated at t-2. What loan contract does the firm offer the bank so as to get $100 from the bank? Does the early consumer deposit $100 at t-0 and does the late consumer deposit S100 at t-1? 10 Points a) b)What is the expected profit of the firm? [2 Points] Now suppose there is bank in the above economy. The bank provides loans to firms and keeps information secret. At t-2 the bank is liquidated and consumers who have deposits with the bank get back what the bank owns at t-2 The bank offers the early consumer the following demand deposit contract. If the early consumer deposits $100 at t-0, he can withdraw $100 at t- The bank offers the late consumer the following contract. If he deposits $100 at t-1, he gets back the loan that the firm repays to the bank since the bank is liquidated at t-2. What loan contract does the firm offer the bank so as to get $100 from the bank? Does the early consumer deposit $100 at t-0 and does the late consumer deposit S100 at t-1? 10 Points a) b)What is the expected profit of the firm? [2 Points]