These are my questions.

A competitive lender makes loans to a pool of borrowers that are identical. After borrowers have received their loans they choose one of two investment projects. Project G pays the borrower a rate of return of ro with probability p,- With probability 1-p, the project earns a zero rate of return, the borrower defaults on the loan, and the lender receives back the initial loan amount. Project B pays the borrower a rate of return of r, with probability p;. With probability 1-p , the project earns a zero rate of return, the borrower defaults on the loan, and the lender receives back the initial loan amount. We assume that To PL, and Pg(1+r,) > p (1+r.). The lender can't observe in which project the borrower invests and so it charges all borrowers the same interest rate ry. The lender lends an amount _ and pays interest rp on funds acquired from depositors. Suppose that when To > 7; the lender requires the borrower to post collateral. Let cr denote the collateral-to-loan ratio. That is, cr = C/L. And let c), denote the minimum collateral-to- loan ratio such that the borrower is indifferent between projects G and B even though ry > r; Round all numeric answers to at least three decimal places. Q1.1 2 Points Suppose To = 0.08, r; = 0.10, pg = 0.99, p. = 0.4, ro = 0.02, L = 100. Find the value for rf such that the borrower is indifferent between projects G and B. Round to three decimal places. Enter your answer here Save Answer Q1.2 1 Point Suppose that the lending rate is ry = 0.16. Find c Enter your answer here Save Answer Q1.3 1 Point Suppose that the lending rate is ry = 0.20. Find cf. Enter your answer here Save AnswerA competitive lender lends an amount _ and faces a cost of obtaining funds equal to: C(L) = (1+ a . L) . L. The interest rate on loans is rx. Suppose that only a fraction p(rx ) of borrowers repay their loans, where: P(rz) = e-0.065.FL. As we have been assuming, borrowers that default pay the lender nothing. Answer the following. Round all numeric answers to at least three decimals places. Q2.1 1 Point Derive an expression for the loan supply function that specifies the quantity of loans supplied Is as a function of the lending rate ry. Assume o = 0.00001. Show your work. Submit your answer as an image file. Please select file(5) Select file(s] Save Answer Q2.2 1 Point What will be the quantity of loans supplied for ry = 0.01? Enter your answer here Save Answer Q2.3 1 Point What will be the quantity of loans supplied for To = 0.025? Enter your answer here Save AnswerQ2.4 1 Point What will be the quantity of loans supplied for Ty = 0.05? Enter your answer here Save Answer Q2.5 1 Point Find the value of lending rate had that maximizes the quantity of loans supplied? (You can find this either using a graphing tool or with calculus) Enter your answer here Save Answer Q2.6 4 Points Suppose the demand for loans is given by: Either by hand or using a computer, construct a plot of the equilibrium and identify the equilibrium lending rate, the quantity of loans supplied, and the quantity of loans demanded on your plot. You graph does not have to be to scale. Submit your answer as an image file. Please select file(s) Select file(s] Save Answer Q2.7 2 Points For the previous question, was there equilibrium credit rationing? Explain how you know. Enter your answer here Save AnswerQ3 2 Points A bank in your area - 1st Anthill Bank - is offering home mortgages. You learn that a loan applicant with $50,000 annual income and cash for a $20,000 downpayment, can receive a $100,000 home loan with an 8% interest rate. Your annual income is $50,000 and you only have enough cash for a $10,000 downpayment. Suppose that you apply for a $100,000 loan from 1st Anthill. The loan officer reviews your financial information and will only lend you the funds at an interest rate of 101%. Based on the information provided, is there credit rationing in this scenario? Clearly explain why or why not. Enter your answer here Save AnswerBanks engage in number of activities that help to limit the problems of adverse selection and moral hazard. For each of the following, identify whether the measure taken is intended reduces moral hazard or adverse selection. Q4.1 1 Point Banks screen loan applicants by checking their credit histories and verifying their employment. O Adverse selection O Moral hazard Save Answer Q4.2 1 Point Banks write contracts that specify what borrowers are allowed to purchase with the borrowed funds and what other types of actions must undertake, e.g., mortgage contracts require borrowers to purchase a fire insurance policy for the purchased home. O Adverse selection O Moral hazard Save Answer Q4.3 1 Point Banks require that borrowers post collateral as part of the loan agreement. O Adverse selection O Moral hazard Save Answer Q4.4 1 Point Banks form relationships with borrowers so that borrowers don't always have to be subjected to the full screening process each time they take out a loan. O Adverse selection O Moral hazard Save AnswerQ1.4 2 Points Explain in words why the imposition of a collateral requirement eliminates the moral hazard problem in the model. Enter your answer here Save