suppose that quincy college ofers a risk-free interst rate of 2,5% on both saving and loans and stonehill bank offers a risk-interst of 3% on both saving and loans

a.what arbitrage opportunity is available?

b.which bank would experience a surge in the demand for loans?which banks would experience a surge in deposits?

c. waht would you expect to happen to the interst rates of the two banks are offering?