Why might you be willing to make a loan to your neighbor by putting funds in a

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Why might you be willing to make a loan to your neighbor by putting funds in a saving account earning a 5% interests rate at the bank and having the bank lend her the funds at a 10% interest rate rather than lend her the funds yourself?

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:13 AM

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Why might you be willing to make a loan to your neighbor by putting funds in a

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The reason for this is that the costs of lending the loan to neighbor are high legal fees ...View the full answer

Economics of Money, Banking and Financial Markets

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