Suppose you go to a bank, intending to put your savings into the term deposit paying annual interest rate from 14% to 15% 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 e.g. 17% to 18% than the bank pays on the term deposit (but lower than the rate the bank charges for car loans e.g. from 20% to 22%). Consider the transaction cost you can avoid by putting your savings into the term deposit.