An individual can borrow a certain sum of money from any of the three banks in her town-Bank 1,Bank 2,and Bank 3.Bank 1 offers her loans at an annual interest rate of 5 percent,Bank 2 offers her loans at an annual interest rate of 3 percent,and Bank 3 offers her a loan at an annual interest rate of 10 percent.A rational individual will ________.
A) borrow from Bank 1
B) borrow from Bank 2
C) borrow from Bank 3
D) be indifferent about borrowing from any of the three banks
Correct Answer:
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Q1: A debtor's quantity of credit demanded and
Q2: The total interest that a borrower has
Q4: If the nominal interest rate in an
Q5: If an individual borrows $200 at an
Q6: Which of the following statements is true?
A)
Q7: The additional payment a borrower has to
Q8: The annual price of a $1 loan
Q9: If an individual borrows $100 at an
Q10: If the nominal interest rate is greater
Q11: If the nominal interest rate in an
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