Suppose Bank One offers a risk-free interest rate of 6.0% on both savings and loans, and Bank Enn offers a risk-free interest rate of 6.5% on both savings and loans. a. What arbitrage opportunity is available? b. Which bank would experience a surge in demand for loans? Which bank would receive a surge in deposits? c. What would you expect to happen to the interest rates the two banks are offering? a. What arbitrage oppotunity is avalable? (Select the best choice below.) A. Take a kan from Bank One at 6.0% and save the money in Bank Enn at 6.5%. B. Take a loan from Bank One at 6.5% and save the money in Bank One at 6.0% C. Take a loan from Bank Enn at 6.5% and save the money in Bank One at 6.0% D. Save at both banks. b. Which bank would experience a surge in demand for loans? Which bank would recolvo a surge in deposits? (Select the best choice below) A. Bank One would experience a surge in the demand for loans, as will Bank Enn. B. Bank One would experience a surge in the demand for loans, whle Bank Enn would recelve a surge in doposits: C. Bank One would experience a surge in the demand for deposits, as will Bank Enn. D. Bank One would experience a surge in deposis, whle Bank Enn would receive a surge in loans. What would you expect to happen to the interest rates the two banks are offering? (Select the best choice below) A. Bank One would docrease their interest rates, and Bank Enn would increase its rates B. Bank One would incresse its loan rate, andlor Bank Ern would decrease its savings rate. C. Both barks would increase their interest rases. D. Both barkon would decrease their interest rates