Suppose the population of Area Y is relatively young while that of Area O is relatively old,

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Suppose the population of Area Y is relatively young while that of Area O is relatively old, but everything else about the two areas is equal.

a. Would interest rates likely be the same or different in the two areas? Explain.

b. Would a trend toward nationwide branching by banks and savings and loans, and the development of nationwide diversified financial corporations, affect your answer to part a?

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Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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Question Posted: Mar 16, 2010 01:50 AM

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Suppose the population of Area Y is relatively young while that of Area O is relatively old,

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a If transfers between the two markets were costly interest rates would be different in ...View the full answer

Financial management theory and practice

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