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Suppose there is one depositor who earns an income of $100 in each period.She spends $50 for consumption and the remainder goes to her savings account.Assume that a bank doesn't do anything with this money except safeguards it.The bank charges $5 for safeguarding fee.
-If the probability of theft is 0.2, what is the necessary and sufficient condition for personal safeguarding to be optimal?
A)The personal safeguarding fee is $5
B)The personal safeguarding fee is less than $5
C)The personal safeguarding fee is greater than $5
D)The personal safeguarding fee is between $5 and $10
E)Any fee would make personal safeguarding optimal

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Use the following information for questions 
Suppose there is one depositor who earns an income of $100 in each period.She spends $50 for consumption and the remainder goes to her savings account.Assume that a bank doesn't do anything with this money except safeguards it.The bank charges $5 for safeguarding fee.
-If the probability of theft is 0.2, what is the necessary and sufficient condition for personal safeguarding to be optimal?
A)The personal safeguarding fee is $5
B)The personal safeguarding fee is less than $5
C)The personal safeguarding fee is greater than $5
D)The personal safeguarding fee is between $5 and $10
E)Any fee would make personal safeguarding optimal

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The Answer of Use the following information for questions 
Suppose there is one depositor who earns an income of $100 in each period.She spends $50 for consumption and the remainder goes to her savings account.Assume that a bank doesn't do anything with this money except safeguards it.The bank charges $5 for safeguarding fee.
-If the probability of theft is 0.2, what is the necessary and sufficient condition for personal safeguarding to be optimal?
A)The personal safeguarding fee is $5
B)The personal safeguarding fee is less than $5
C)The personal safeguarding fee is greater than $5
D)The personal safeguarding fee is between $5 and $10
E)Any fee would make personal safeguarding optimal

Use the Following Information for Questions