The State Bank offers an interest rate of 5.5% on savings and 6% on loans, while the Colonial Bank offers 6.5% on savings and 7% on loans. Which of the following is the LEAST likely outcome of such a situation?
A) The State Bank would experience a surge in demand for loans.
B) The Colonial Bank would experience a surge in demand for deposits.
C) The State Bank would experience a fall in demand for deposits.
D) The Colonial Bank would experience a surge in demand for loans.
Answer: D
You might also like to view...
Annuities may be purchased with all of the following EXCEPT
A) a single payment that may be deferred for 5 years B) a schedule of fixed payments C) a single lump-sum payment D) a schedule of flexible payments
Which of following is a reason why the promotion activities of the retailer's channel partners may sometimes conflict with the retailer's goals?
a. Manufacturers expect the retailer to pay for all advertising. b. Manufacturers want to promote the price and not the features of their products. c. Manufacturers tend to be more short-term oriented than retailers with their ads. d. Retailers are interested in telling the customers that they have the product available for purchase at a convenient location, not what the product's features are. e. Manufacturers carry a larger variety and breadth of products than do retailers.