Professor Gaston,your History teacher,borrows money at a rate of 6% per year from the Valley State Bank for a tuition loan for her son.You have $1,200 deposited into your checking account at the same bank earning a rate of 0.5% per year.Which of the following statements is TRUE?
A) The bank is criminally liable to you for paying an interest rate lower than the expected rate of inflation.
B) You and your professor have an obvious conflict of interest because you have accounts at the same financial institution.
C) You benefit from earning interest on your deposit,safety for your funds,and having a recognizable means for paying for your financial obligations without having to hold cash.
D) Your professor is the only party to be made worse off by this example because she is the only party paying net interest.
Correct Answer:
Verified
Q1: The set of financial activities that support
Q3: Which of the following is NOT a
Q4: _ is the area of finance concerned
Q5: Of the following,which is NOT one of
Q6: The movement of money from lender to
Q7: "The organized financial intermediaries and the forums
Q8: All financial transactions have a buyer and
Q9: Which of the following is NOT typically
Q10: _ is the area of finance concerned
Q11: Financial institutions and markets _.
A)are the organized
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