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13-102 What Is the Expected Return on the Loan to the Bank

Question 104

Multiple Choice

13-102 What is the expected return on the loan to the bank if 50 percent of the loan is drawn and there are no reserve requirements on demand deposits? Do not take future values of fees or interest income received.


A) 13.45 percent.
B) 13.57 percent.
C) 13.60 percent.
D) 13.72 percent.
E) 13.90 percent.

Correct Answer:

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