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Suppose you go to a bank, intending to buy a certificate of deposit with your savings. Explain why you would not offer a loan to
Suppose you go to a bank, intending to buy a certificate of deposit with your savings. Explain why you would not offer a loan to the next individual who applies for a car loan at your local bank at a higher interest rate than the bank pays on certificates of deposit (but lower than the rate the bank charges for car loans)
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