QUESTIONS Abank has a cost of funds of Smar t to be recovered 49% lowered to d he te funds QUESTION Deco ...l T-Mobile ? 0 * 21% 9:06 PM Abbhosted.cuny.edu * Question Completion Status: A bank has a cost of funds of 12%, a default rate of 5% and an underwriting transaction cost of $25 per loan. To break even on a $100 loan, the bank must charge $12 to cover cost of funds, $5 to cover expected defaults, and $25 to cover transaction cost, totaling $42 or an interest rate of 42%. On a $300 loan, using the same costs above, the break even rate would be___%. The interest rate for the $100 loan is _than the rate for the $300 loan due to _ against a smaller principal amount to be recovered. a. O 43%, lower, variale transaction cost b. O 43%, lower, fixed cost of funds c. O 25%, higher, fixed transaction cost d. O 25% higher. variable cost of Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window Save and Submit ... T-Mobile 0 * 21% O 9:06 PM Abbhosted.cuny.edu Question Completion Status: QUESTION 2 Microfinance clients cannot repay loans with more than their current (unpredictable) income. This is an example of: Limited Liability b. O Sixteen Decisions co Production function d. O Agency Problems Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window Save and Submit ..ll T-Mobile 0 * 21%O 9:06 PM Abbhosted.cuny.edu * Question Completion Status: QUESTION 3 Which of the following creates Ex Post Moral Hazard as it relates to microloans? a. O Profits are lower than principle and interest payment to lender b. O Borrower can claim lower profits than were actually earned on product sales C. None of the above d. O Borrower can earn a higher wage elsewhere Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window Save and Submit