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QUESTION 1 Casey has $7,000to invest in a certificate of deposit. Her local bank offers her 2.7796 on a high yield FDIC-insured savings account. A

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QUESTION 1 Casey has $7,000to invest in a certificate of deposit. Her local bank offers her 2.7796 on a high yield FDIC-insured savings account. A nonfinancial institution offers her 3.02% on a 1twelve-monthCD. What else must Casey consider in choosing between the two instruments? A. the government's risk tolerance. that if she only needs access to the money after a long period of time, the nonfinancial institution's CD might be too risky bc the bank's risk tolerance. OD. that if she needs access to the money in a short period of time, the nonfinancial institution's CD might be too risky QUESTION 2 If the nominal interest rate is 7% but domestic inflation is 4%, then the real interest rate is A.2% 8.3% c.4%

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