Question
The State Bank offers an interest rate of 5.5% on savings and 6% on loans, while the Colonial Bank offers 6.5% on savings and 7%
The State Bank offers an interest rate of 5.5% on savings and 6% on loans, while the Colonial Bank offers 6.5% on savings and 7% on loans.Which of the following is the likely outcome of such a situation?
A) The State Bank would experience a surge in demand for deposits.
B) The Colonial Bank would experience a surge in demand for deposits.
C) The Colonial Bank would experience a fall in demand for deposits.
D) The Colonial Bank would experience a surge in demand for loans.
E) The State bank would experience a fall in demand for loans.
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Entrepreneurial Finance Strategy, Valuation, And Deal Structure
Authors: Janet Smith, Richard Smith, Richard Bliss
1st Edition
0804770913, 9780804770910
