Suppoee Bark One olfers a risk-tree interest rate of 8.5 S on both savings and loans and Bank Enn offers a risk-free inlerest rate of 9 the on both sarings and los. a. What arbitrige opportunity is available? b. Which bark would experience a surge in demand for loans? Which bank would receive - surge in depcsits? e. What would you expect to happen to the interest tates the two banks are offering? a. What arbitrage opportunity is avalable? (Select the best choice below) A. Take a ican from Bark Enn at 9.0% and save the money in Bank One at 8.5%. 8. Take a ioan from Bark One at 9.0% and save the money in Bark. One at 8.5%. C. Take a loan from Bank One at 8.59 and save the money in Bank Enn at 9.0 \$. D. Save at both banks. b. Which bark would experience a surge in demand for loons? Which bank would receive a surge in deposks? (Select the best choice bolow) A. Eank One would experience a surge in the demand for depoaits, as wil Bark Enn. B. Eank Orie would expenience a surge in deposits, while Bariz, Enn would receive a sarge in loans. C. Bank One woukd expenence a surge in the demand for loans, as will Barik Enn. D. Bank Ore would experience a wurge in the demand for loans, while Bark Enn would receive a surge in depesia. 7hat wedd you expect to happen io the interest rates the two baciks ace offering? (Select the best choice below) A. Boh bariss would decriase their irterest mases: 8. Bank One would incresse is toan rate, andior Bank Enn would decrease les savings rate. C. Barik One would decrease their inturest rates, and Bank. Enn would increase is rates. D. Beth barks would increase their intarest rates